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Western Union's Acquisition Faces Regulatory Hurdle in California

Western Union and Intermex said New York regulators approved Western Union’s pending acquisition of Intermex, while California regulators suspended a previously granted approval extension.

The New York State Department of Financial Services gave the green light for the deal on Aug. 14, with Western Union making commitments tied to remittance services and locations in New York after the acquisition.

One day earlier, on Aug. 13, the California Department of Financial Protection and Innovation sent a letter suspending the approval extension it had granted on July 31. California said it needed “to further review the transaction” after six months had passed since the original approval and to examine the deal’s impact on operations in the state.

Western Union and Intermex said they plan to work quickly with California regulators to address questions and seek reinstatement of the approval. They said they still expect to close promptly once that approval is restored and the remaining customary closing conditions are met.

The update leaves the transaction partway through the regulatory process: one key state approval secured, another put on hold. As a result of these announcements, the company's shares have moved -1.67% on the market, and are now trading at a price of $7.365. Check out the company's full 8-K submission here.

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