Citigroup, U.S. Bancorp Sell Brazilian Credit-Card Venture

  • Unit is said to be valued at more than 300 million reais
  • Buyer is Sao Paulo-based payments company Stone Pagamentos

Citigroup Inc. and U.S. Bancorp agreed to sell their Brazilian credit-card joint venture to Stone Pagamentos SA, according to an e-mailed statement from the Sao Paulo-based payments company.

The deal gives the venture, Elavon do Brasil Solucoes de Pagamento SA, an enterprise value of more than 300 million reais ($84 million), according to a person familiar with the terms of the deal, who asked not to be identified because details haven’t been made public. The figure includes debt and investments.

Stone Pagamentos declined to comment on the value. The company is owned by Arpex Capital, whose shareholders include billionaire Jorge Paulo Lemann.

Reuters reported earlier Friday that a deal had been reached.

Banco do Brasil SA and Banco Bradesco SA earlier this year gave up on a plan to buy a stake in Elavon’s Brazil unit after antitrust regulators signaled they would impose restrictions before approving the deal, people familiar with the matter said in February.

Minneapolis-based U.S. Bancorp sold its 50.1 percent stake in Elavon to Stone, the company said in a statement Friday, without disclosing terms of the transaction.

The sale is part of Citigroup’s “ongoing efforts to allocate resources more efficiently,” the bank said in an e-mailed statement. Citigroup owned the remaining 49.9 percent of Elavon.

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