DOJ Challenging First Data Merger with Concord

Friday 24 October 2003 04:49 CET | News

First Data and Concord EFS have characterized the complaint filed by the U.S. Department of Justice (DOJ) challenging First Datas merger with Concord as inaccurate and ill-advised and vowed to vigorously defend the transaction in court.

The DOJ has filed its suit in an effort to block the transaction. First Data and Concord officials said they are prepared to proceed quickly with the case and will ask the Court to rule on the Justice Departments request to enjoin the deal well in advance of the January 31, 2004 termination date in the First Data and Concord merger agreement. The companies intend to hold their previously scheduled shareholder meetings on October 28. The DOJ appears to have focused its opposition to the transaction on the combination of the NYCE network, which is majority owned by First Data, and the STAR network, owned by Concord. While those networks carry PIN debit transactions at both the point-of-sale (POS) and ATMs, the DOJs complaint is limited to the alleged market for PIN debit services at the POS. First Data has continuously stressed that this merger is about choice, voice and innovation: greater choice for consumers and merchants through the expansion of PIN debit; greater voice for merchants and banks in shaping the developing of new products, and greater scale that will result in lower prices and enable investment in innovation to the benefit of the payments marketplace as a whole.

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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce