Wednesday, 27 January, 2021

DOJ Antitrust Strikes Back, Visa Ditches Plaid Acquisition

Visa and Plaid call off $5.3B merger citing DoJ pushback Visa and Plaid terminate blockbuster merger
Ginger Lawrence | 15 January, 2021, 00:51

By acquiring Plaid, the Justice Department argued, the transaction would have enabled Visa to eliminate the threat to its online business thereby enhancing or maintaining its monopoly.

Visa Inc. and financial technology company Plaid Inc. said on Tuesday that they would terminate their $5.3-billion merger agreement following a US government lawsuit aimed at stopping the proposed transaction on antitrust grounds. Plaid is a financial services company that operates a popular financial data aggregation platform in the United States.

The government called the companies' decision to halt their combination "a victory for American consumers and small businesses".

Visa and Plaid have terminated their $5.3bn acquisition agreement after USA authorities filed a legal challenge against the deal.

U.S. emissions plummet to lowest levels in post-World War II era
Carbon dioxide and other greenhouse gases trap solar radiation in the atmosphere, just like the glass traps heat in a greenhouse. Emissions from industrial activities were down 7% in 2020 compared to 2019, also because of the major slowdown in the economy.

The case was scheduled for trial on June 28 in the US District Court for the Northern District of California.

Visa learned while conducting due diligence on Plaid that the venture planned to create a money-movement business and aimed to offer the service at a 50% discount to Visa's fees, according to the Justice Department's court filing in November. The Federal Trade Commission issued a civil investigative demand past year seeking additional documents after the agency's Bureau of Competition began looking into whether Visa's actions prohibited merchants' ability to route certain payments over alternative debit networks.

Payments giant Visa has called off its decision to acquire fintech startup, Plaid for $5.3 billion following the backlash it faced over antitrust concerns from the U.S. regulators, the companies officially announced on Tuesday. "With more competition, consumers can expect lower prices and better services". The industry has been forever changed in the past twelve months, as consumers have turned to fintech to help manage their financial lives at an accelerating pace. Plaid, which says it saw "unprecedented demand" for its services, claims to have grown its customer base by 60% in the past year. Hundreds of new banks joined our platform, and over 4,000 companies turned to Plaid as the infrastructure to support their businesses, including numerous largest Fortune 500 companies who are focused on bringing digital financial products to their customers.