US-based global payments technology company Visa Inc is most likely to enter into an agreement to purchase Visa Europe payments business from the European banks.
The European banks are exerting pressure on the company to pay billions of dollars in accordance with a strategy being finalized by them, as reported by the Wall Street Journal.
The financial organizations, which manage Visa Europe, are gearing up to establish their own payments business to process credit- and debit-card transactions in competition with Visa and MasterCard.
Sources familiar with the development were quoted by the Wall Street Journal as saying that the value of deal may be between $3bn and $11bn.
The proposed deal, if concluded, will strengthen the US payment company’s footprint in the global market, while allowing it to exploit markets such as Turkey and Poland.
It is expected that Visa may announce future course of action during its board meeting scheduled for next month, pertaining to the acquisition.
Managing their own clearance systems, Visa Inc and Visa Europe operate as separate companies. The latter is owned by the European financial institutions and operates as a licensee of Visa Inc.