Visa and fintech startup Plaid have ditched plans for a USD 5.3 billion merger after a Department of Justice antitrust lawsuit had threatened to block the deal.
Visa CEO Al Kelly said in a statement he believes the companies would have prevailed in court, but “protracted and complex litigation will likely take substantial time to fully resolve.”
Antitrust regulators argued Visa’s acquisition of Plaid would eliminate a nascent competitor offering a “lower-cost option for online debit payments” and “deprive American merchants and consumers of this innovative alternative to Visa and increase entry barriers for future innovators.”
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