Brazil: Citicorp to sell off Brazilian credit card venture

Banking giant Citigroup Inc. and its partner U.S. Bancorp have agreed to sell off their Joint Venture in Brazil, which operates credit card payments, to local company Stone Pagamentos SA. The payment company, now based in Sao Paulo, revealed the deal late last week.

The agreement would give the local investors in the company, Elavon do Brasil Solucóes de Pagamento SA, full control of an enterprise valued at over 300 million Reais ($84 million US). The number includes all outstanding debts and investments. Stone Pagamentos, the company most likely to snatch up the sale, is owned by Arpex Capital, whose moard of directors includes renowned Brazilian billionaire Jorge Paulo Lemann.

Both Banco do Brasil and Bradesco last year passed on offers to buy out Elavon’s shares in the company after competition authorities announced that certain restrictions would be imposed on any such merger.

Full Content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.