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Western Union faces pushback from Intermex over deal termination

By Reuters News

Nov 11 (Reuters) - Intermex on Wednesday rejected Western Union's WU.N attempt to terminate their merger agreement, demanding the money transfer company take all necessary actions to complete the deal.

Western Union said on Tuesday it was ending the agreement to acquire the Latin America and the Caribbean-focused payment transfer firm, after the companies failed to secure regulatory approvals.


Here are more details:

  • Western Union 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

  • It said on Tuesday the California Department of Financial Protection and Innovation's final conditions of approval for the merger were "unacceptable" and would have required material changes to its business model

  • The firm added it had received approvals from every other jurisdiction except California

  • However, Intermex said it had satisfied all its obligations and was ready to complete the deal, vowing to pursue remedies and hold Western Union liable for substantial damages

  • Western Union did not immediately respond to a Reuters request for comment on Intermex's rejection of the termination

  • "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," Western Union said in a statement on Tuesday

  • Under the terms of the agreement, neither Western Union nor Intermex is required to make any payment in connection with the termination


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