As German banks consider tie-up

Florida-based FIS in £32.5bn acquisition of Worldpay

worldpayTwo giant deals are in the offing in the financial services sector, with Worldpay being acquired by FIS in a $43 billion (£32.5bn) deal, while Germany’s Commerzbank and Deutsche Bank are making progress in merger talks.

Worldpay shareholders will be offered 0.9287 FIS shares and $11 in cash for each share they have. Fidelity National Information Services is based in Florida. Its shareholders will own about 53% of the combined company.

FIS’s Gary Norcross, who will remain chairman of the board of directors, president and chief executive, said: “Scale matters in our rapidly changing industry.”

Worldpay was sold by the Royal Bank of Scotland in 2010 for £2.025 billion to Advent International and Bain Capital as a condition in the European Commission’s clearance in December 2009 of state aid to RBS.

RBS retained a 19.9% stake until selling it in 2013 to the firm’s majority shareholders.

Worldpay listed on the London Stock Exchange in October 2015 and was acquired by Vantiv on 16 January 2018 for $10.4bn.

Deutsche’s shares were 3% higher in early trading with Commerzbank 4% up after further talks took place in their merger plan. The supervisory boards of the two banks will meet later in the week. Unions are concerned about up to 30,000 job cuts.

The two companies’ headquarters are in Frankfurt.

Comment: Worldpay’s growth could have settled RBS’s bailout bill

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