Visa, Plaid cancel $ 5.3 billion deal by Reuters

© Reuters. A Visa credit card is seen on a computer keyboard in this image illustration

(Reuters) – The fintech company and Visa Plaid said on Tuesday they would rescind their $ 5.3 billion merger agreement following a lawsuit by the US government aimed at halting the proposed transaction on antitrust grounds. The US Department of Justice had filed a lawsuit to stop the deal in November, saying Visa was “a monopolist in online debit transactions” and that the proposed acquisition “would eliminate a nascent competitive threat” to that monopoly. The deal, which was proposed in January 2020, was scrapped to avoid lengthy litigation, said Al Kelly, president and CEO of Visa Inc (NYSE :). “We are confident that we would have prevailed in court as Plaid’s capabilities are complementary to Visa’s, not competitive,” he added. Visa said in January that it had agreed to buy private company Plaid in a $ 5.3 billion deal aimed at boosting the payments giant’s access to the booming fintech sector. (This story is corrected to show Plaid not listed, remove Reuters Instrument Code from first paragraph)

Disclaimer: Fusion Media wishes to remind you that the data contained on this website is not necessarily accurate or in real time. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges but by market makers, so the prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not appropriate for commercial purposes. Therefore, Fusion Media assumes no responsibility for any business losses you may incur as a result of the use of this data. Fusion Media or anyone involved with Fusion Media will not accept any responsibility for loss or damage as a result of reliance on information, including data, quotes, charts, and buy / sell signals contained on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.