Company News

UPDATE 1-Santander Brasil mulling spinoff of Getnet amid plans to build global card acquirer

(Adds context, potential benefits for Santander)

SAO PAULO/BRASILIA, Nov 16 (Reuters) - Banco Santander Brasil SA said on Monday that it was studying potentially spinning off its payments platform Getnet, in a move that could include listing Getnet shares in Brazil, according to a securities filing.

Santander Brasil said its shareholders would receive direct stakes in Getnet equal to their stakes in the bank overall, which means Spain’s Banco Santander SA <SAN .MC> would become its controlling shareholder.

The move comes as the Spanish bank has recently unveiled plans to create a global acquiring business, after being successful with Getnet in Brazil. It has already acquired a card processor in Mexico in February, for instance.

The move could also give Getnet more freedom to grow and finance itself independently from Santander Brasil.

The spinoff also comes as Brazilian payments platforms are expanding beyond the traditional card processing business. Stone Ltd is trying to takeover software firm Lin SA .

A listing of Getnet could allow it to issue new shares in the future for potential acquisitions, as the payments landscape in Brazil undergoes transformation. On Monday, the central bank launched an instant payments platform.

GetNet has gained market share in the card acquiring business in Brazil and is likely to end 2020 at 15% versus 3% in 2013.

Reporting by Carolina Mandl, in Sao Paulo, and Jake Spring, in Brasilia; Editing by Leslie Adler and Stephen Coates