On Thursday, U.S. credit reporting agency TransUnion announced its acquisition of a majority stake in its Mexican branch, valued at approximately $560 million. This move will increase TransUnion's ownership in Trans Union de Mexico to about 94%, up from the current 26%.
With this strategic purchase, TransUnion aims to capitalize on Mexico's expanding consumer credit market. The deal, however, does not include the commercial credit operations of the major Mexican credit bureau, Buro de Credito, which is a joint venture with Dun & Bradstreet.
Carlos Valencia, TransUnion's Latin America head, indicated plans to introduce new credit data alternatives, enhance fraud prevention measures, and diversify into insurance and financial technology. TransUnion CEO Chris Cartwright expressed enthusiasm about contributing to Mexico's digital transformation and enabling broader financial opportunities for consumers.
Mexican financial institutions Banorte, HSBC, Scotiabank, and Santander have each confirmed the divestment of their stakes in TransUnion's Mexico division. The transaction, anticipated to conclude by year-end, is estimated at 11.5 billion pesos ($560 million) based on an enterprise value of 16.8 billion pesos. TransUnion intends to finance the acquisition through a combination of cash and debt, pending regulatory approval.