Visa, Plaid cancel $ 5.3 billion deal by Reuters

(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)

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