Gasoline a week after the Federal Reserve declared it sufficiently capitalized to do as much as it wanted, JP Morgan Chase returned to the case, with a move to the payment company WorldPay U.K ..
The company’s shares rose 27% on Tuesday in anticipation of an offer of the campaign after WorldPay announced that it had received preliminary approaches JP Morgan and credit card processors Vantiv.
Market participants believe there may be more interested parties there, as the French Ingenico had also shown interest in the company in 2015. The share price action added 2.5 billion WorldPay dollars Tuesday, which is a capitalization Market of more than 10.5 billion dollars.
Passing WorldPay would be the largest transaction since JP Morgan agreed to buy Bear Stearns and Washington Mutual during the 2008 financial crisis. From these transactions, its top priority was to ease concerns that it is “too important to fail. ”
The news comes just days after the Federal Reserve decided that the home of Jamie Dimon and the largest US banks now has more than enough capital to deal with realistic risky situations and allowed them to return $ 1 billion to shareholders Through dividends or repurchase.
WorldPay was withdrawn from the Royal Bank of Scotland in 2010 as part of the EU conditions to approve the UK 43 billion UK bailout during the financial crisis. It was bought for the first time by private equity groups Bain Capital and Advent International, before being placed on the London Stock Exchange in 2015.
Payments have been considered as one of the banking sectors most likely to be affected by technology companies, such as line and square. It is also a very fragmented market and a request for consolidation.
WorldPay took advantage of the global migration of consumers to cashless transactions. It handles about 15 billion transactions last year, a figure that has doubled since 2012. It covers 126 currencies in 146 countries.
However, it is considered relatively low in the US, making it a good strategic fit for one of the top three payment players in the United States (Global Payments Inc. is JP Morgan and the largest rival in the Vantiv market ). As part of the acquisition rules in the UK, WorldPay’s announcement means that Vantiv and JP Morgan have until 1 August to confirm their intentions or withdraw.