News

Hispanic groups oppose Concord/First Data merger

September 24, 2003

WASHINGTON - Representatives from several national Hispanic organizations are expressing their opposition to the merger of First Data and Concord EFS. The groups cite what they call "the well-known predatory and abusive practices" of Western Union, a First Data subsidiary, as the main reason for opposing the merger.

"Currently, 25 percent of U.S. Latinos do not have a bank account and these are the people that have disproportionately suffered the consequences of the predatory practices of companies like Western Union," said Jacob Monty, general counsel of the Association for the Advancement of Mexican Americans, in a news release.

The Concord acquisition will further harm Latinos "by increasing First Data's stranglehold on many payment markets crucial to those without bank accounts," Monty said. "This merger will further harm these vulnerable consumers by increasing First Data's dominance in many of these critical markets, including ATM networks, transaction processing and point-of-sale platforms."

Groups opposing the merger include The Latino Coalition, the Mexican American Grocers Association, the Association for the Advancement of Mexican Americans, the Hispanic Business Roundtable and the Hispanic Alliance for Progress.

Concord plans to hold a special meeting of its shareholders on Oct. 28 to vote on the proposed merger, which calls for First Data to exchange 0.40 First Data common shares for every Concord common share. First Data also would issue approximately 200 million common shares to Concord shareholders under the agreement.

(See related stories EFT megamerger may impact ATM fees, First Data takes go-slow approach to Concord merger, First Data refiles proposal to acquire Concord and Justice department extends First Data merger investigation)