Business

Worldline $9.2 billion Ingenico deal may need EU concessions, sources told Reuters

The deal is expected to create a European leader in the payments sector

Worldline payments company logo
A logo of payments company Worldline is seen in the illustration picture taken February 3, 2020. Photo: Reuters/Christian Hartmann/Illustration
Ler em português
  • The deal was announced in February this year;
  • Ingenico’s strong presence in the travel, health, and retail sectors is one of its main attractions for Worldline. Ingenico, in its turn, is a huge point-of-sale terminal provider that controls almost 40% of this market globally and has Latin America as its third-largest market.

French payments company Worldline‘s 7.8 billion euro ($9.23 billion) bid for Ingenico may require concessions to gain European Union antitrust regulator approval, people familiar with the matter said on Monday.

The acquisition by Worldline, which was born out of French IT company Atos and provides everything from in-store point-of-sale terminals to online payments, is emblematic of a wave of mergers and acquisitions that U.S. rivals kicked off last year as they try to build up their share of digital transactions. The agreement, which is expected to create a European leader in the sector, was announced in February this year.

READ ALSO: Apple buys Mobeewave, whose technology turns phones into payment terminals

If Worldline is not able to allay EU concerns and in the absence of concessions, the deal would face a full-scale investigation following the end of the EU’s preliminary review.

Worldline has until Wednesday to offer concessions to the European Commission unless it can convince the EU competition enforcer prior to that deadline that the move is unnecessary.

READ ALSO: Banco Inter announces follow-on of approximately BRL 1 billion aiming at new acquisitions

The Commission, which is due to decide on the deal by Sept. 16, declined to comment. Ingenico had no immediate comment. “We’re pursuing the usual procedure of discussions with the Commission and the process is underway, within the expected timetable,” Worldline said.

Ingenico’s strong presence in the travel, health, and retail sectors is one of its main attractions for Worldline. Ingenico, in its turn, is a huge point-of-sale terminal provider that controls almost 40% of this market globally, and has Latin America as its third-largest market.