Cielo (BSP:CIEL3) is the leading merchant acquirer for Visa credit cards in Brazil. As the Brazilian economy has weakened, some smaller retailers have gone out of business, which has created a head-wind for the company’s acquisition of business. However, we remain comfortable with this investment. Cielo controls a major share of all transactional volume in Brazil—a market where credit card participation is less than half the level of the United States.
From First Eagle Global Value Fund's second quarter 2018 shareholder letter.
