TransUnion (TRU.US) signs a $560 million acquisition agreement to increase its stake in the Mexican company to 94%.

American credit agency TransUnion (TRU.US) has signed a $560 million agreement to increase its stake in its Mexican subsidiary, TransUnion de Mexico. TransUnion will acquire 68% of the shares of TransUnion de Mexico, also known as Bur de Credito, from several major banks in Mexico. According to a statement, this transaction will increase TransUnion's ownership to 94%, with a valuation of $8.18 billion. The deal includes the consumer credit business of TransUnion de Mexico, but not its commercial division. TransUnion President and CEO Chris Cartwright said in a statement, "We are excited to bring our advanced technology, innovative solutions, and industry expertise to Mexican consumers and businesses." According to Mexico's anti-monopoly regulator, shareholders of TransUnion de Mexico include Citigroup's subsidiary Banamex, Banco Bilbao Vizcaya Argentaria from Argentina, Grupo Financiero Banorte, HSBC Mexico, Banco Santander, and Bank of Nova Scotia. Mexico lags behind other Latin American countries in increasing the number of bank account holders. To seize this opportunity, new financial technology companies such as Brazil's Nu Holdings (NU.US) and Argentina's MercadoPago and Ual are entering Mexico to expand their businesses. These companies are also competing for banking licenses to better serve their customers. Carlos Valencia, President of TransUnion Latin America, stated in a release that the acquisition was made to have the opportunity to sell financial health and fraud solutions to consumers, as well as develop partnerships with financial technology and insurance companies. For many Mexicans, Bur de Credito is often seen as an obstacle to obtaining credit, rather than a source of information on how to improve their credit status. TransUnion expects the business to generate $145 million in revenue by 2024, with an adjusted EBITDA of $70 million. Pending regulatory approval and closing conditions, the company anticipates the acquisition to be completed by the end of 2025.