The sale of 51% of shares in Prisma, the company that handles Visa card payments in Argentina, has been completed as US-based Advent Investment Fund has closed a deal for US$725 million, to be distributed among the banks that own the firm.
In addition to giving up control of Prisma, the banks now have three years to divest themselves of the 49% of remaining shares. They will be betting that, with Advent as a partner, the company will be valued well over the US$1.42 billion valuation Prisma was given for this transaction.
The banks were forced to divest Prisma following an investigation by the National Commission for the Defense of the Competition (CNDC), which determined that the company had a dominant position in the payments market. Crucially, the CNDC found that Prisma dominates what is called the “acquiring” and “data processing” system through extremely low tariffs, which it compensated with high charges along the rest of the business chain. This strategy worked as a very effective barrier to entry for those who wanted to enter the procurement and processing market. Prisma is thought to account for about 70% of payment transactions involving electronic money in Argentina.
Full Content: Clarin
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC Pushes Review of CoStar’s Commercial Real Estate Antitrust Case
Jan 31, 2024 by
CPI
UK’s CMA Investigates Ardonagh’s Atlanta Group and Markerstudy Merger
Jan 31, 2024 by
CPI
Greenberg Traurig Grow Financial Regulatory and Compliance Practice
Jan 31, 2024 by
CPI
Dutch Regulator Fines Uber €10 Million for Privacy Violations
Jan 31, 2024 by
CPI
DOJ Investigates AI Competition, Eyes Microsoft’s OpenAI Deal: Bloomberg
Jan 31, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – The Rule(s) of Reason
Jan 29, 2024 by
CPI
Evolving the Rule of Reason for Legacy Business Conduct
Jan 29, 2024 by
CPI
The Object Identity
Jan 29, 2024 by
CPI
In Praise of Rules-Based Antitrust
Jan 29, 2024 by
CPI
The Future of State AG Antitrust Enforcement and Federal-State Cooperation
Jan 29, 2024 by
CPI