Western Union faces pushback from Intermex over deal termination
WU•Intermex rejected Western Union’s decision to terminate their merger agreement and demanded that it take necessary steps to complete the deal. Western Union said it stands by the termination after California imposed approval conditions it considered unacceptable; the companies had agreed to a roughly $500 million cash acquisition.
1. Intermex challenges termination
Intermex said it had met 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 it disagrees with Intermex’s characterization and believes it acted in accordance with the agreement.
2. California approval conditions
Western Union said the California Department of Financial Protection and Innovation’s final approval conditions were unacceptable and would have required material changes to its business model. It said it had secured approvals in every other jurisdiction, and that neither company was required to make a payment upon termination.
