The regulator just killed Playtech's £459 million takeover of Plus500
Plus500 said in a statement on Monday:
Further to the determination by Playtech PLC that it will be unable to obtain FCA approval before 31 December 2015, the Company and Playtech agreed to terminate the Merger Agreement.
The deal was first announced back in June, meaning Playtech has been unable to get a seal of approval from the Financial Conduct Authority (FCA) for almost 6 months. Plus500 is an Israeli company but listed on London's AIM stock exchange.
Playtech says in a statement on Monday:
Playtech's takeover of Plus500 has been controversial from the start. Plus500's share price went into free fall back in May after the FCA told the company its anti-money laundering checks weren't up to scratch. The Israeli-headquartered company lets ordinary people make risky, leveraged bets on stocks and currencies through something called a contract for difference (CFD).
Plus500 had to freeze thousands of UK accounts in the wake of the regulator's review and the company has been scrambling to fix its problems. While it was doing that Playtech swooped in with a low-ball bid.
The fellow Israeli company's offered £459 million ($695 million) for Plus500, almost half the £862 million ($1.3 billion) it was worth before the crisis blew up. Hedge fund giant Odey Asset Management, Plus500's biggest shareholder, says the offer is "an opportunistic bid exploiting current regulatory issues and risks."
Plus500's CEO Gal Haber said in Monday's statement: