Western Union Agrees to Maintain New York Services, Cap Fees After Intermex Deal

Dow Jones08-14
 
 

Western Union committed to maintain store locations in New York state, to continue offering remittance services and to cap fee increases for three years after its purchase of International Money Express as part of agreements with the state.

The commitment begins after the DFS approves Western Union's acquisition of Intermex, New York Attorney General Letitia James said Thursday.

Under the agreements with James's office and the state's Department of Financial Services, the company must maintain at least the same physical presence in ZIP codes with Intermex locations as before the acquisition. It must also continue offering retail remittance services to Mexico, Ecuador, Honduras, Guatemala, Nicaragua and Peru.

Western Union also agreed to limit its retail services price increases to the pace of inflation, according to the release.

The company is required to report its service terminations and data around remittance services to the DFS for the three-year period. It must also pay for an independent auditor to ensure compliance with the agreement one year after the acquisition.

"As Western Union moves forward with this acquisition, my administration is ensuring that critical remittance services will remain available in communities across the state while protecting consumers from unfair fee increases," New York Governor Kathy Hochul said.

Western Union agreed to acquire Intermex a year ago for $16 a share in cash.

 
 

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