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Redecard confirms Cabal deal, says it's a multibrand company

Bnamericas Published: Saturday, September 12, 2009
Brazilian card processor Redecard, which leading private sector bank Itaú Unibanco (NYSE: ITUB) controls with a majority stake, has confirmed its deal with Argentine card brand Cabal, saying in a securities filing that it is a multibrand company. Redecard said in the filing that it will process and clear transactions with the Cabal brand. Cabal bases its Brazilian operations out of Brasília and issues its card brand through local credit cooperative Bancoob. Redecard said the new contract reinforces its place in the Brazilian market as a multibrand processor, given that it already has partnerships with MasterCard, MasterCard Maestro and Diners Club, in addition to its other benefits partners, which include French food services firm Sodexo, and event ticket retailers, among others. Rival VisaNet, in which Bradesco (NYSE: BBD) and Banco do Brasil ( BB) own 26.6% and 23.5%, respectively, currently has an exclusive relationship with Visa (NYSE: V), which prompted the justice ministry's consumer affairs division SDE to attempt to end that deal. VisaNet won a reprieve from antritrust regulator Cade late last month, but the case awaits a final decision and the government has signaled a willingness to end such exclusive arrangements in pending card regulatory changes.

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