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Visa Inc amends Visa Europe deal

Visa Inc amends Visa Europe deal

Visa Inc, following feedback from the European Commission has been forced to change the terms of its acquisition of Visa Europe.

Under a deal struck in November, Visa Inc was set to pay an upfront consideration of €16.5 billion in cash and stock with the potential for an additional earn-out of up to €4.7 billion payable following the fourth anniversary of closing.

However, in an effort to keep the EC on-side, it has reached preliminary agreement with bank-owned Visa Europe to change the transaction details.

“Instead of an earn-out, the cash consideration payable in the transaction will be increased by €1.75 billion: €750 million payable upon closing, and €1.0 billion, plus 4% compound annual interest, payable on the third anniversary of closing,” reads a statement.

The deal is still subject to negotiation and may not now be closed by the end of the third quarter, as initially planned.

The post Visa Inc amends Visa Europe deal appeared first on Payments Cards & Mobile.

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