The money transfer services company dropped its acquisition of the smaller rival after California regulators weighed in, but now a fight over the deal has ensued.

Remittance services provider Western Union planned to buy International Money Express, but opted out Tuesday. Now, the two companies have begun a battle over whether the $500 million deal should be consummated.

Western Union had been waiting more than a year for regulators to approve a purchase of the younger rival also known as Intermex, but when the California Department of Financial Protection and Innovation issued approval conditions Tuesday, the acquirer backed out. Western Union decided against the deal and notified Intermex it was terminating the acquisition agreement on Tuesday, the day that was the deadline for either side to exit the pact.

The California regulator “delivered unacceptable final Conditions of Approval that would have required material changes to Western Union’s business model, its agent relationships and execution of its long-term business strategy,” Western Union said in a press release late Tuesday.

Western Union’s move isn’t passing muster with Intermex, which notified Western Union on Wednesday that it expects the transaction to be completed. Now, a legal fight is brewing.

“Through its counsel, Intermex has responded to Western Union rejecting Western Union's purported termination of the merger agreement and demanding that Western Union take all actions necessary to consummate the merger,” Intermex said in its statement.

Denver-based Western Union, which provides cross-border payments services and has roots reaching back more than 100 years, announced in August 2025 that it would purchase Intermex, but since then the companies have been trying to gather needed regulatory approvals.

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