Saturday 21 April 2018

Vantiv knocks JPMorgan off pitch to buy Worldpay

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

The US payment-processing company Vantiv has agreed to buy its British rival Worldpay Group Plc for £7.7bn (€8.8bn), two years after the UK financial technology firm went public.

The cash-and-share offer equates to £3.85 a share, including a 5p per share dividend, the companies said in a statement yesterday. Potential rival suitor JPMorgan Chase said it would not make a bid after being invited to consider an offer.

Worldpay's shares had risen 28pc on Tuesday upon news that it had interest from both bidders, but fell back 7.5pc after JPMorgan pulled out of the race.

Elsewhere, stock markets rode out the latest rise in tensions around North Korea, with the main markets in Europe, Asia and the United States all inching higher as attention moved to minutes from the US Federal Reserve's last meeting.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3pc, regaining half the losses it saw on Tuesday when North Korea fired a missile into Japanese waters.

Nevertheless, the organisation's global shares index reflected a relatively ambivalent global mood, rising less than 0.05pc, despite a handful of solid purchasing manager surveys in Europe.

New York's main indices were also set to open a touch higher after the July 4 holiday break.

For now, investors seem to be giving policymakers the benefit of the doubt that the global economy can take any tightening of monetary policy, although the latest data was mixed - strong in Europe and weaker in China.

"North Korea has rattled markets but central bankers are more important," said Kathleen Brooks, research director at City Index in London.

"While North Korea's military ambitions are a background threat for markets, we don't think that this particular geopolitical event is at the stage yet where it will cause a spike in volatility."

South Korea's main index rebounded by 0.36pc and Japan's Nikkei ended up 0.25pc.

Shanghai stocks rose more than 1pc, despite a drop in the Caixin/Markit services purchasing managers' index (PMI) to 51.6 in June, from 52.8 in May.

IHS Markit's final composite Purchasing Managers' Index for the eurozone was 56.3 in June, down from May but chalking up the best performance in the last quarter in over six years.

Currency markets were in limbo, with the euro trading around a cent below last week's 14-month highs against the dollar, less than 0.2pc lower on the day. (Reuters)

Indo Business

Business Newsletter

Read the leading stories from the world of Business.

Also in Business