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Global Payments shares plunge 17% after company announces $24 billion Worldpay deal

1. Global Payments shares fell 17% after announcing Worldpay acquisition. 2. The Worldpay purchase aims to serve 6 million customers in 175 countries. 3. Global Payments is selling Issuer Solutions to FIS for $13.5 billion. 4. Analysts warn of potential margin pressures and call the move a step backward. 5. FIS shares increased by 8% following the announcements.

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FAQ

Why Bearish?

The significant drop in shares indicates market displeasure with the acquisition terms and anticipated margin pressures, reminiscent of similar negative reactions in past acquisitions where high debt levels were involved.

How important is it?

The acquisition's strategic impact on Global Payments and FIS’s involvement has significant implications for market positioning and investor outlook.

Why Long Term?

The changes will take time to reflect in operational performance post-acquisition and potential regulatory delays in finalizing deals.

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