Is the £9.3bn deal with US firm Vantiv another example of unambitious British management selling out cheaply?
Worldpay is the payments processor that escaped from the wreckage at Royal Bank of Scotland to become a member of the FTSE 100 index. Ignore the memory that RBS sold for £2bn in 2010. Worldpay has enjoyed heavy investment since then and its marketplace has boomed. The real question is whether a £9.3bn takeover by US firm Vantiv is another instance of unambitious British management selling out cheaply. The short answer is yes, it is, with a couple of qualifications.
Worldpay is plainly correct is to say consolidation is happening at speed in its industry. Deals seem to arrive every week. Greater size, in theory, provides scope for savings ($200m, say the duo) and bigger investment budgets to ride the e-commerce wave. And Vantiv is a reasonable marriage partner. It is one of the big players in the US, where Worldpay’s venture has spluttered. Thanks to the UK firm’s presence in 140 countries, the combo will be a true global operator.
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