Western Union Secures New York Approval for Intermax Acquisition, Faces California Hurdles

Western Union has secured approval from the New York Department of Financial Services for its acquisition of Intermax, a rival money transfer company. The approval comes after Western Union agreed to maintain its store locations in New York State and cap fee increases for three years.

The acquisition, which was valued at around $500 million, was first announced last summer. However, New York City Mayor Zohran Mamdani had expressed opposition to the deal, arguing that Western Union wanted to buy Intermax to "jack up remittance fees". Western Union has now reached an agreement with the New York Department of Financial Services, in partnership with the State Attorney General's Office, to address these concerns.

Under the terms of the agreement, Western Union must maintain the same physical presence in zip codes where Intermax locations are operating at the time of the acquisition. The company must also offer retail remittance services to specific countries and limit price increases to inflation levels. New York Governor Kathy Hochul has welcomed the agreement, stating that it will ensure critical remittance services remain available in communities across the state while protecting consumers from unfair fee increases.

However, Western Union still faces regulatory hurdles in California. The California Department of Financial Protection and Innovation has suspended the approval extension previously granted for the deal. In a letter, the DFPI stated that the suspension is based on a need to further review the transaction and examine the impact of the proposal on operations in the state. Western Union and Intermex have stated that they will work to address the watchdog's questions and seek reinstatement of the approval as soon as practicable.

## California Regulatory Hurdles Ahead

| | Western Union | Intermax | | --- | --- | --- |

| Approval Extension | Suspended | - | | Review Period | 6 months | - |

The California Department of Financial Protection and Innovation has suspended the approval extension for the deal, citing a need to further review the transaction and examine its impact on operations in the state. Western Union and Intermex have stated that they will work to address the watchdog's questions and seek reinstatement of the approval as soon as practicable.