Visa confirms Visa Europe acquisition talks
23 July 2015 | 16053 views | 0
Visa has confirmed that it is in talks about buying back its former subsidiary Visa Europe, with a decision on whether to complete a deal expected by October.
Reporting its third quarter results, the card giant says that it believes there is "compelling logic" for it to "consummate a business combination" with Visa Europe.
Talks are ongoing and, while there is no assurance that any deal will be agreed, "the company is targeting to resolve these discussions by the end of October".
While they share the same brand, Visa Europe and Visa Inc. have been separate entities since 2007, when they split ahead of the US business listing on the New York Stock Exchange. The European business is owned by member banks.
Visa Inc. has a call option to buy shares in the bank-owned European organisation, while Visa Europe's members have a put option to sell them to Visa Inc.
In May, citing sources, Bloomberg reported that talks between the two were underway but were at an early stage and could stumble over price, which is expected to be in the $15 billion to $20 billion range.
Meanwhile, Visa posted GAAP Q3 net income of $1.7 billion, or $0.69 per share, up from $1.4 billion the year before. Operating revenues were $3.5 billion, up from $3.2 billion.