The payments giant Visa has abandoned the purchase of fintech startup Plaid. This was stated in a joint statement.
The companies terminated the agreement after the DOJ lawsuit in November 2020. In the department’s view, the $5.3 billion deal would violate antitrust law and enable Visa to remove a competitive threat in the electronic payments market.
Plaid co-founder Zach Perret said that Visa will work with the startup as an investor and partner.
The DOJ welcomed the companies’ decision to abandon the merger.
“With greater competition, consumers can expect lower prices and better services,” the statement said.
In August 2020, the UK’s antitrust regulator approved the agreement between Visa and Plaid.
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