AgenciesWestern Union has terminated its proposed $500 million acquisition of Intermex after rejecting California's regulatory conditions for approving the deal, which it said would have required significant changes to its business model. (Representative image)
Money transfer company Western Union said on Tuesday it is terminating its agreement to acquire Intermex, a US-based firm that focuses on payment transfers to Latin America and the Caribbean, after the companies failed to secure the approvals needed to complete the deal.
Western Union said the final conditions of approval for the merger from California's Department of Financial Protection & Innovation (DFPI) were "unacceptable".
It argued that those conditions would have required material changes to Western Union's business model.
The firm added that it had received approvals from every other jurisdiction except California.
Neither Western Union nor Intermex is required to make any payment in connection with the termination of the agreement.
"While we are disappointed that we were unable to complete the acquisition on terms that were acceptable to Western Union, we believe this course of action is in the best interests of the company and its shareholders," the money transfer company said in a statement.
The company had agreed last year to buy Intermex for about $500 million in cash in a move aimed at expanding its presence in high-growth Latin American markets.
The acquisition would have added to its adjusted earnings per share by more than $0.10 in the first full year after close, according to Western Union.
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Western Union said the final conditions of approval for the merger from California's Department of Financial Protection & Innovation (DFPI) were "unacceptable".
It argued that those conditions would have required material changes to Western Union's business model.
The firm added that it had received approvals from every other jurisdiction except California.
Neither Western Union nor Intermex is required to make any payment in connection with the termination of the agreement.
"While we are disappointed that we were unable to complete the acquisition on terms that were acceptable to Western Union, we believe this course of action is in the best interests of the company and its shareholders," the money transfer company said in a statement.
The company had agreed last year to buy Intermex for about $500 million in cash in a move aimed at expanding its presence in high-growth Latin American markets.
The acquisition would have added to its adjusted earnings per share by more than $0.10 in the first full year after close, according to Western Union.
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