Oh dear. Only this June we reported that Playtech was looking to acquire binary options by buying Plus500. But it now appears to be a no-go, as it’s been recently reported. So what happened? How will this affect both companies in the future and how will it affect online players?
So What’s the Deal?
In June, it came out that Playtech had agreed to acquire Plus500 for£459.6 million. Expecting to be finalized in September, the deal ran into a delay that resulted into a push back to the end of the year.
The delay happened because of concerns from the UK Financial Conduct Authority, with Playtech stating last week that a decision on its FCA application was due next month.
Apparently, Playtech considered this position over the weekend and claimed to be unable to address the concerns of the FCA in this statement:
“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 was quick to point out it would not have any penalties as a result of the ending its merge with Plus500, and declared its existing 9.9% holding in Plus500 would remain the same.
“Playtech has no immediate plans with respect to its existing 9.9% holding in Plus500.”
Plus500 CEO Gal Haber is still confident of his company’s position, assuring us that the company was still in “good shape” stating that: “Plus500 remains a growing, highly profitable and cash generative company with strong momentum in an expanding international market.”
Haber asserted his company remains adaptive, with a “business as usual” policy that enables continued investment in marketing, technology and regulatory operations during this period.
Both companies are on good terms with each other even after this deal-breaker. So who knows? They might decide to merge again in the future.