Are Visa and MasterCard looking to Denmark for possible acquisition?
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Are Visa and MasterCard looking to Denmark for possible acquisition?

According to analysts at Morgan Stanley and Nordea Equity Research, Danish card payment services company Nets could be an acquisition target for Visa or MasterCard. Nets is Scandinavia’s biggest payments processor, which is valued at around $4 billion, and as the world continues to progress towards a cashless future, it may be time for the biggest players to look for further consolidations in the sector.

Visa and MasterCard are both benefitting from a number of positive trends

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SOURCE: Yahoo Finance

Nets released a statement Saturday, confirming interest, but declining to say from which quarter: “Nets can confirm that it has been approached and is reviewing its options. However, it is very early stage and there can be no certainty as to the potential outcome.”

Meanwhile, Morgan Stanley analysts released a note summing up their belief that Nets valuation put it beyond the reach of most companies: “we believe interest from pure acquiring companies is less likely. The U.S. payment schemes (Visa and MasterCard) are clearly large enough to be able to acquire a company the size of Nets.”

Despite its hefty price tag, analysts suggest that Nets is attractively valued, and trades at a premium against its closest competitor, Worldpay Group. Could it be about to become part of something much larger?

Disclosure

Dominion holds Visa and MasterCard in its Global Trends Ecommerce Fund.


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