Mark Elwa
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Mark Elwa in Mergers & Acquisitions,

Visa to buy Visa Europe for up to $23.4 billion

Visa Inc. on Monday confirmed plans to buy its European counterpart Visa Europe for up to EUR21.2 billion ($23.4 billion) in cash and stock, a deal that would bring Visa's global operations under one roof.

The payments network had held sporadic talks over the years with Visa Europe, and the tie-up marks Visa's biggest deal ever. The Wall Street Journal had reported last week that was a deal was imminent.

The announcement came as Visa reported results for its September quarter that were mostly in line with analysts' estimates, while payments volume increased 12% on a currency adjusted basis. Visa, which recently boosted its dividend, also unveiled a new $5 billion share buyback program.

Under the terms of its deal for Visa Europe, the company will pay EUR11.5 billion ($12.68 billion) in upfront cash, in addition to EUR5 billion ($5.51 billion) in preferred stock convertible into common shares. The deal includes up to EUR4.7 billion ($5.18 billion) in payments, payable following the fourth anniversary of the transaction's closing, which would be triggered by the achievement of revenue targets.

Think we can see a corretion until $74-75 per share in a couple days. What do you think?