Western Union has officially terminated its planned acquisition of Intermex, a deal originally valued at $500 million. The company announced the decision shortly after the California Department of Financial Protection and Innovation (DFPI) issued conditional approval for the merger.
The regulator's conditions aimed to address concerns regarding fraud, money laundering, and consumer access to financial services. Western Union stated that these requirements would have necessitated material changes to its business model, agent relationships, and long-term strategic plans.
The company emphasized that the DFPI did not identify any regulatory failures on its part regarding existing compliance standards. Western Union concluded that the imposed conditions were not in the best interests of its shareholders, agents, or the firm itself.
The acquisition had previously faced scrutiny from other authorities, including the New York State Department of Financial Services, which granted approval in August following specific commitments from Western Union. The merger agreement included an outside termination date of November 10, 2026.
