Mastercard NYSE:MA, a global payments company, is considering selling a majority stake in Vocalink, its UK payments subsidiary, back to British banks as concerns grow over a critical part of the country's financial infrastructure remaining under U.S. ownership. The Financial Times reported that Mastercard is evaluating the potential transaction, which could return control of one of Britain's most important retail payment systems to domestic financial institutions.
Mastercard acquired Vocalink from a consortium of British banks in 2016 for 701 million, equivalent to about $937.38 million. A possible sale of a 51% stake could be valued at roughly 400 million, or $534.88 million, while DeliveryCo, an entity supported by several major UK banks and payment companies, is believed to be a potential buyer.
Vocalink designs, builds and operates bank account-based payment systems in Britain, processing more than 90% of salaries, over 70% of household bills and 98% of state benefits. Investors may view a potential sale as a notable change in Mastercard's UK operations, although the transaction remains under consideration and the source article did not indicate that a final agreement has been reached.