U.S. credit reporting agency TransUnion has signed a definitive agreement to acquire majority ownership in the consumer credit business of the largest credit bureau in Mexico, Buró de Crédito.
Mexican banks BBVA, Banorte, Scotiabank, HSBC and Santander announced on Thursday that they will separately sell their respective stakes in TransUnion México, which controls the Buró de Crédito.
The buy-out — estimated at US $560 million — leaves TransUnion’s stake in TransUnion México at around 94%, up from 26%, the news agency Reuters reported.
TransUnion has held seats on TransUnion México’s board of directors for over two decades, and serves as one of its technology providers.
In a statement, TransUnion said it plans to tap into Mexico’s rapidly expanding consumer credit market with the purchase.
“Our expansion in Mexico continues our commitment to making trust possible in global commerce,” Chris Cartwright, president and CEO of TransUnion, said in the statement. “Credit bureaus are a catalyst for financial inclusion, and we are excited for the opportunity to bring the benefits of our state-of-the art technology, innovative solutions and industry expertise to Mexican consumers and businesses.”
“We look forward to supporting [Mexico’s] digital transformation objectives to empower consumers with increased economic opportunity,” Cartwright added.
TransUnion said it expects to close the deal — which is subject to regulatory approval — by the end of the year and will fund it through cash and debt.
Carlos Valencia, TransUnion’s Latin America regional president, told Reuters that TransUnion expects to offer alternative credit data and fraud mitigation options, while also expanding into insurance and financial technology.
“We anticipate that our planned acquisition of Buró de Crédito’s consumer credit business will strengthen our leadership position in Latin America and will make TransUnion the largest credit bureau in Spanish-speaking Latin America,” Valencia said.
Consumer credit in Mexico is rapidly expanding, and over half of Mexican adults have at least one financial product, according to financial technology newswire Finextra.
Although credit penetration remains lower in Mexico than other Latin American countries, it increased from 34% to 42% of GDP between 2013 and 2023.
“We anticipate integrating the Buró de Crédito consumer credit business into our strong global operating model as part of our International segment,” Todd Skinner, international director ofTransUnion, said in the company statement. “We expect to deliver strong growth over the long term, supported by favorable market dynamics and execution against our growth playbook.”
The bureau’s commercial credit business is to be excluded from the deal, TransUnion said. That arm of the Buró de Crédito is jointly run with Dun & Bradstreet, Reuters reported.
With reports from Reuters, El Economista, La Jornada, Finextra and TransUnion
