Playtech will back away from its plan to acquire online contracts broker Plus5000 for £460 million citing stalled regulatory approvals.
Playtech agreed to acquire Plus500 in June, but the deal has had several regulatory delays. The UK Financial Conduct Authority recently said that due to “certain concerns raised” it would not have assessed the deal until December. That delay jeopardized the deal, which was to be completed by December 31.
“The company has discussed with Plus500 the consequences of the recent developments with the FCA and has agreed to the termination of the merger agreement,” Playtech said in a press statement. “Accordingly, the acquisition of Plus500 will not be proceeding as planned.”
Playtech has set a goal of entering the financial trading sector through corporate acquisition for this year, but with this deal falling through that plan has been delayed.
Playtech is also seeking $105 million acquisition of financial trading platform Ava Trade, but the Central Bank of Ireland has opposed the acquisition. Playtech said it “continues to appeal the CBI’s decision to oppose its application to acquire Ava Trade”.
