But with Brazil mired in recession, Citi does not want to deploy more money in the country and is unwilling to reallocate capital from its other operations there, the source said. One source said the Citi-Elavon venture needs about 200 million reais ($52 million) in new capital. They have a combined 95 percent of the market while Elavon has just 1 percent. The joint venture, known as Elavon do Brasil, has failed to gain traction in a burgeoning payment processing market dominated by Cielo SA and Redecard, a unit of Itaú Unibanco Holding SA. bank declined to come up any additional funds, said the sources, who declined to be named because the talks were confidential. Relations between Elavon and Citigroup, partners for five years, have soured after Brazil’s central bank said the joint venture needed more cash and the U.S. SAO PAULO, Nov 23 (Reuters) - Citigroup Inc has put its stake in a Brazilian credit card processing joint venture with Elavon Inc up for sale, two sources with direct knowledge of the plan said, after a disagreement over additional funds for the loss-making unit.
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