The Spanish BBVA announced that it has agreed to acquire an additional 21.7% stake in Neon Payments, for $ 300 million, after its participation in the share capital increase.
Following the completion of the AMK, BBVA will directly and indirectly control 29.7% of Neon Payments, which is based in the United Kingdom and controls 100% of the Brazilian Neon Pagamentos.
The bank, which already indirectly controls 10.2% of Neon, is expected to complete the transaction later this month.
Like banks across Europe, Spanish banks have turned to other sources of lucrative lending, such as payments, in a bid to boost profits as low interest rates shrink margins.
This BBVA transaction is part of its digital strategy to stimulate growth through new ventures.
Source: Capital
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