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Bendigo and Adelaide Bank Limited (ASX:BEN) is set to become a substantial shareholder in one of Australia’s largest payments providers, Cuscal.
Cuscal has proposed to buy Strategic Payments Services, an electronic payments services provider launched jointly by the bank and Mastercard in 2006.
Should Cuscal shareholders back the deal at its annual general meeting in November Bendigo and Adelaide Bank and Mastercard will both emerge with a 10 per cent stake in the new-look Cuscal.
Bendigo and Adelaide Bank Managing Director Mike Hurst says combining Strategic Payments Services with Cuscal makes the best sense strategically and financially.
Mr Hirst says the combined entity will have the scale and capabilities to compete across the full payments spectrum.
Bendigo and Adelaide Bank reported a net profit of $372 million in the 2014 financial year.
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