Bloomberg: Visa stock pressured as Mexico's anti-monopoly agency rejects Prosa deal

Investing.com - According to Bloomberg, Visa Inc. (NYSE:V) planned to acquire payment processor Prosa, but the deal was rejected by Mexico’s National Antitrust Commission on Friday, marking the first major decision made by the country’s newly established competition regulatory agency.

The commission rejected Visa’s proposal to acquire a 51% stake in Prosa, announced in December 2023. In a statement on Friday, the National Antitrust Commission said that the solutions proposed by Visa and Prosa were “inappropriate or insufficient to address the market and consumer risks identified by the commission.”

The transaction would have given Visa control over two of Mexico’s three card issuing institutions, including its own system and Prosa’s brand Carnet, leaving only Mastercard (NYSE:MA) as a competitor. It would also have allowed Visa to control two of Mexico’s four clearinghouses, including Prosa, Visa, Mastercard, and Servicios Electrónicos Globales (E-Global).

Under the proposed terms, Visa would have gained access to detailed information on all card payments processed through Prosa, including payment data from its own branded cards and Mastercard’s. The deal would have significantly increased Visa’s share in Mexico’s payment processing and brand licensing markets.

Prosa is currently owned by Grupo Financiero Banorte, HSBC Holdings, Invex Controladora SAB, Santander Bank, Scotiabank, and Banco Nacional del Ejército. Its largest competitor in the clearinghouse market, E-Global, is owned by Spain’s Banco Exterior and Banamex.

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