JPMorgan Chase Won't Compete Against Vantiv For Worldpay

Ashley Carr
July 6, 2017

Worldpay Group PLC, Britain's largest payment processor, said Tuesday that it had received separate takeover approaches from US credit card technology firm Vantiv Inc. and JPMorgan Chase Bank.

Dependent on completion, Worldpay shares would be delisted from the London Stock Exchange.

Under the terms of the offer, Worldpay shareholders would own about 41 percent of the share capital of the combined company.

If the deal goes ahead, Worldpay shares will be delisted form the London Stock Exchange, and the combined group will continue with Vantiv's listing on the NY stock exchange.

Total digital payment transactions outside of conventional providers such as banks stands to be worth roughly $740 billion this year, Odeluga noted, citing research by German market research provider Statistia.

Today they retreated 35p to 372.6p after Vantiv said iit would pay 55p in cash per share plus 0.0672 new Vantiv shares and a cash dividend of 5p per Worldpay share.

Vantiv will dominate the board with seven members, including Charles Drucker as executive chairman and co-chief executive.

A concrete offer must be made by August 1 under British takeover law.

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Worldpay provides businesses with the technology needed to process payments on cards, online or on mobile.

The US banking giant said: "Following preliminary considerations, JPMorgan hereby announces that it does not intend to make an offer for Worldpay".

"JP Morgan continues to hold Worldpay in high regard", it added.

Both companies said there was compelling reasons for the merger, with the enlarged group having strong positions in four core regions of the US, Europe, Asia-Pacific and South America.

Analysts suggested Worldpay could fetch up to 450p per share, nearly double the 2015 IPO price, valuing it at £9 billion.

JPMorgan's merchant-acquiring business, Chase Paymentech, began as a payments processor for mail-order catalog companies, which gave it the ability to handle internet transactions when that market exploded in the 1990s, according to Wayne Johnson, an analyst at Raymond James Financial Inc.

RBS sold a majority stake in Worldpay to Bain Capital and Advent International in 2010 to comply with European state aid rules after receiving a 45.5 billion-pound bailout from the United Kingdom government during the financial crisis.

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