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Monday, November 2, 2015

Visa to purchase Visa Europe in deal worth as much as $23 bln, (NYSE: V)

Visa Inc said on Monday it would purchase former subsidiary Visa Europe Ltd for up to $23.3 billion in a deal that will give the world's largest payments network a chance to cut costs over the long term and raise fees in the second-biggest card market.The price for the long-anticipated deal was higher than many had expected, but ended a period of strategic uncertainty that had dogged Visa in recent months.Visa Inc and Visa Europe, a cooperative of European banks with more than 500 million cards, were part of a global bank-owned network until 2007.Most of the units merged to form Visa Inc, which went public in 2008, leaving Visa Europe as a separate entity.

Visa Inc. is a payments technology company. The Company is engaged in operating a processing network, VisaNet, which facilitates authorization, clearing and settlement of payment transactions across the world. Shares of V fell by 3.43% or $-2.66/share to $74.92. In the past year, the shares have traded as low as $59.75 and as high as $78.89. On average, 8703160 shares of V exchange hands on a given day and today's volume is recorded at 20856202.