Western Union Abandons $500 Million Intermex Takeover After California Regulator Sets Unacceptable Conditions
Western Union Abandons $500 Million Intermex Takeover After California Regulator Sets Unacceptable Conditions #
Western Union has called off its planned $500 million all-cash acquisition of International Money Express (Intermex) after California’s financial regulator attached conditions to its approval that the payments company said were unacceptable, triggering an immediate dispute with the target company.
Western Union delivered a termination notice on Tuesday following a final decision from California’s Department of Financial Protection and Innovation (DFPI), which granted conditional approval for the transaction but stipulated requirements the company said would have forced material changes to its business model, agent relationships, and long-term strategy. According to Western Union’s statement, the DFPI’s conditions were “substantial and not in the best interests of Western Union, its agents or its shareholders.”
The company said every other regulatory jurisdiction had cleared the deal, leaving California as the sole remaining obstacle. The approval process had been contentious: the DFPI originally approved the transaction in February without conditions, then granted two extension requests, in April and July, before abruptly suspending its own approval just 13 days after the second extension, saying it needed to re-examine the deal’s impact on California-based operations.
New York’s Department of Financial Services had cleared the acquisition in August, with Western Union committing to preserve certain remittance services and locations in the state following completion.
Intermex, a US-based money-transfer firm focused on remittance corridors to Latin America and the Caribbean, is resisting the termination. Through its legal counsel, Intermex rejected Western Union’s notice, asserted that it had fulfilled all of its own contractual obligations, and demanded that Western Union take every step necessary to close the merger. The company reserved its right to seek specific performance and to hold Western Union liable for substantial damages.
Western Union originally announced the deal, expected to close in the first half of 2026, as a way to strengthen its US retail footprint and accelerate digital customer acquisition. Management had indicated the acquisition would add more than $0.10 to adjusted earnings per share in its first full year of contribution. The company had also described the transaction as a path to expanding its presence in Latin American and Caribbean remittance corridors.
The dispute over whether the termination is legally valid could lead to litigation, with Intermex showing no sign of accepting Western Union’s decision to walk away.
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