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US: Rent-A-Center not bound by merger deal

 |  March 17, 2019

Retailer Rent-A-Center was within its rights to back out of a US$1.36 billion merger deal with private equity firm Vintage Capital Management last year, a Delaware state court ruled Thursday, March 14.

Vice Chancellor Sam Glasscock III of the Delaware Chancery Court said that Vintage’s failure to inform Rent-A-Center that it was extending the merger deal by an agreed-upon date triggered Rent-A-Center’s right to call it off under the two parties’ contract.

Rent-A-Center is a “rent-to-own” business, allowing customers to rent furniture, electronics, and other goods with the option of eventually purchasing them.

“We are pleased that the court has affirmed the validity of our termination of the merger agreement with Vintage Capital,” Rent-A-Center CEO Mitch Fadel said in a statement. “Looking ahead, we will continue to focus on executing our strategic plan to grow our business and enhance value for our stockholders.”

Full Content: Reuters

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