California’s Department of Financial Protection and Innovation (DFPI) announced Tuesday (Nov. 11) that it had given conditional approval to the deal, provided the companies comply with the regulator’s consumer protection concerns.
Soon after, Western Union issued a statement calling off the deal, arguing that the DFPI’s conditions would have “required material changes” to its business model, agent relationships and long-term business strategy.
“Western Union viewed these conditions as substantial and not in the best interests of Western Union, its agents or its shareholders,” the statement said.
The DFPI said its conditions were designed to prevent fraud, scams and money laundering and ensure “fair and competitive access to financial services.”
Western Union noted that the regulator had not found any failures on the company’s part to comply with legal requirements for scam and fraud prevention, money laundering and providing consumers with “fair and competitive access.”
Western Union announced the planned $500 million deal last year, saying it would help strengthen its U.S. retail business and speed digital customer acquisition.
“Intermex has built a well-recognized brand, as well as strong agent and customer relationships,” Western Union President and CEO Devin McGranahan said in a new release at the time. “Together, we will expand our retail footprint, unlock operational efficiencies and accelerate digital engagement.”
The deal has faced pushback from other avenues. As covered here in May, New York City Mayor Zohran Mamdami had asked the New York State Department of Financial Services (NYDFS) to block the deal, arguing it would put financial pressure on the city’s immigrants.
The NYDFS ultimately granted its approval in August after Western Union made certain commitments related to remittance services and locations in New York after the acquisition.
Around the same time, Western Union said the DFPI had suspended an approval extension it had granted to the pending acquisition, citing the need for further review.
As recently as last week, Western Union was still working on the deal, with McGranahan saying during an earnings call that the company had gotten feedback from the DFPI and was “actively working to determine an acceptable path forward.”
“November 10, 2026, is the outside date included in the merger agreement, at which point either party has a right to terminate the agreement,” the CEO added.
