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Visa, Plaid Terminate $5.3 Bln Merger Agreement Due To U.S. Antitrust Lawsuit

Visa Inc. (V) and US-based fintech start-up Plaid Inc. have terminated their $5.3 billion merger agreement, citing the U.S. Department of Justice's antitrust lawsuit filed last year to block the deal.

Visa said that the companies are confident they would have prevailed in court as Plaid's capabilities are complementary to Visa's, not competitive. But protracted and complex litigation will likely take substantial time to fully resolve.

The Justice department had filed a civil antitrust lawsuit in November, 2020, to stop the merger, alleging that Visa is a monopolist in online debit, charging consumers and merchants billions of dollars in fees each year to process online payments. The case was scheduled for trial in the U.S. District Court for the Northern District of California on June 28, 2021.

The Justice department has agreed to drop its lawsuit, as a result of the companies' decision to terminate their merger agreement.

In was in January 2020 that Visa announced its agreement to acquire Plaid in a deal worth $5.3 billion.

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