ispanic Groups have objected to payment-processing giant First Data Corp.'s $7.8 billion plan to buy smaller competitor Concord EFS, Inc., concerned that the combined companies will give First Data's Western Union division even more control over the $20 billion Latin America money transfer market.

Hispanic groups opposing the merger, such as the Latino Coalition and the Hispanic Business Roundtable, sent a letter to the Department of Justice stating that the deal "will adversely affect competition and result in higher prices and fewer services," the Wall Street Journal reported.

The group argued that Western Union already controls close to 80% of money transfers to Latin America and that through the purchase of Concord would control even more of the market.

It also claimed that Western Union transfer fees are too expensive, and that the acquisition would end Concord's development of a less expensive ATM-based money transfer system that would compete with First Data's network.

First Data announced the acquisition strategy in April 2003. Because of the anti-trust implications of combining the STAR and NYCE debit networks (the combined companies would potentially control about 70% of off-line debit transactions), the proposed merger has since been under scrutiny by the Justice Department, which is taking extra care in its review. First Data has even offered to sell its stake in the NYCE ATM network to get an approval on the deal.

Shareholders of First Data Corp. and Concord EFS, Inc. will vote in a special meeting on October 28, 2003 on the proposed acquisition.

In June, antitrust regulators reviewing the deal requested more information from the companies. The Payment System Working Group, part of the National Association of Attorneys General, has also asked to review the plans.

First Data remains optimistic that the transaction will close by the end of the year.