Intermex rejected Western Union’s attempt to terminate their merger agreement and demanded it take all necessary actions to complete the deal. Western Union said California’s final approval conditions were unacceptable; the proposed acquisition was valued at about $500 million in cash.
Intermex said it had met all its obligations and was ready to complete the merger, and vowed to pursue remedies and hold Western Union liable for substantial damages. Western Union said on Tuesday it was ending the agreement after the companies failed to secure regulatory approvals.
Western Union said California’s Department of Financial Protection and Innovation had set final approval conditions it considered unacceptable, requiring material changes to its business model. It said it had received approvals from every other jurisdiction except California. The agreement requires neither company to make a payment in connection with the termination.
Western Union had agreed last year to acquire Intermex, a Latin America- and Caribbean-focused money transfer firm, for about $500 million in cash.
