Western Union has terminated its agreement to acquire International Money Express (Intermex) after reaching what it described as an impasse with California regulators.

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California’s Department of Financial Protection and Innovation (DFPI) announced Tuesday (Nov. 11) that it had given conditional approval to the deal, provided the companies comply with the regulator’s consumer protection concerns.

Soon after, Western Union issued a statement calling off the deal, arguing that the DFPI’s conditions would have “required material changes” to its business model, agent relationships and long-term business strategy.

“Western Union viewed these conditions as substantial and not in the best interests of Western Union, its agents or its shareholders,” the statement said.

The DFPI said its conditions were designed to prevent fraud, scams and money laundering and ensure “fair and competitive access to financial services.”

Western Union noted that the regulator had not found any failures on the company’s part to comply with legal requirements for scam and fraud prevention, money laundering and providing consumers with “fair and competitive access.”

Western Union announced the planned $500 million deal last year, saying it would help strengthen its U.S. retail business and speed digital customer acquisition.

“Intermex has built a well-recognized brand, as well as strong agent and customer relationships,” Western Union President and CEO Devin McGranahan said in a new release at the time.

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