The Western Union Company (NYSE: WU) and International Money Express (NASDAQ: IMXI) have received regulatory approval from the New York State Department of Financial Services for Western Union’s proposed acquisition of Intermex.
The approval includes commitments from Western Union covering remittance services and locations in New York following completion of the transaction.
However, the deal has encountered a fresh regulatory hurdle in California. On August 13, the California Department of Financial Protection and Innovation (DFPI) suspended an approval extension that had been granted on July 31 for the acquisition.
The DFPI said the suspension was required to allow further review of the transaction, citing the six months that had passed since its original approval and the need to examine the potential impact on operations in California.
Western Union and Intermex said they intend to engage with the DFPI promptly and address its questions. The companies will seek reinstatement of the approval as soon as practicable.
The two companies remain committed to completing the acquisition and plan to close the transaction soon after the California approval is reinstated, subject to the satisfaction or waiver of remaining customary closing conditions.
The regulatory developments come as Western Union seeks to expand its position in the money transfer market through the acquisition of Intermex. Intermex operates cross-border money transfer services, with a strong presence in remittances between the United States and Latin America.
The transaction remains subject to regulatory and other closing requirements. While the New York approval marks progress, the California review introduces an additional step before the deal can be completed.
Neither company provided a revised closing timeline following the DFPI’s decision.
