The $500 million deal now faces opposition from the mayor of New York City Zahran Mamdamiwho says the takeover will put financial pressure on immigrants in the city.
“Every month, thousands of working-class New Yorkers use Western Union to send money to their loved ones,” says Mamdani. books Thursday (May 14) on the BlueSky social media platform.
“Now Western Union wants to buy its biggest competitor, Intermex, so it can raise remittance fees and squeeze families even more. Households should not pay the price for corporate monopolies.”
His post was in reference to Wednesday’s (May 13) New York Times (NYT) a report In a letter sent by Mamdani to New York State Department of Financial Services (NYDFS), and ask them to block the transaction.
The letter, obtained by The New York Times, said the takeover “would add further pressure to the already difficult economic conditions facing New York City’s immigrant communities.”
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As The New York Times notes, Western Union and Interex operate retail sites that allow new immigrants to send money back to their home country. These remittances have increased as migrants try to transfer as much money as possible to their home countries for fear that they will not be able to do so. He will be deported soon.
Western Union deal Announce It was expected to close last August, during the second quarter of this year, pending regulatory approval.
According to the report, Western Union issued a response to Mamdani’s letter, telling NYDFS that the acquisition “will ensure that accessible and affordable services” remain available to immigrants in New York City by helping it compete against digital-only competitors.
The company added that it is “committed” to retail Money transfersSaying they make up about 60% of Western Union’s revenue.
During an earnings call last month, company officials said they were looking to mergers and acquisitions as a growth driver.
This came after a quarter in it Revenues were flatthanks in part to a decline in the company’s business in the Americas.
“As you know, remittances in the Americas faced significant pressures beginning early last year and continuing through this winter, particularly across our key corridors from the U.S. to Latin America,” Western Union President and CEO Devin McGranahan he said on the earnings call.
“We have seen significant declines in markets like Mexico, Ecuador and Guatemala, driven by a combination of migration dynamics and US immigration policy.”
The company recently closed two other acquisitions, Lana and Dash. It also acquired Western Union euro In April of last year.
