That $500 million deal is now facing pushback from New York City Mayor Zohran Mamdami, who argues the acquisition would put financial pressure on the city’s immigrants.
“Every month, thousands of working class New Yorkers use Western Union to send money to loved ones,” Mamdani wrote Thursday (May 14) on the social media platform BlueSky.
“Now Western Union wants to buy its top competitor, Intermex, so it can jack up remittance fees and squeeze families even more. Families shouldn’t pay the price for corporate monopolies.”
His post was in reference to a Wednesday (May 13) New York Times (NYT) report on a letter Mamdani sent to the New York State Department of Financial Services (NYDFS), asking them to block the deal.
The letter, obtained by the NYT, said the acquisition “would further strain the already challenging economic circumstances facing New York City’s immigrant communities.”
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As the NYT notes, Western Union and Intermex operate retail locations that let recent immigrants send money back to their home country. These remittances have been increasing as immigrants try to transmit as much money back home as they can out of fears that they may soon be deported.
Western Union’s deal, announced last August, had been expected to close during the second quarter of this year, pending regulatory approval.
According to the report, Western Union issued a response to Mamdani’s letter, telling the NYDFS that the acquisition would “ensure that accessible and affordable” services would still be available for New York City immigrants by helping it compete against digital-only rivals.
The company added that it was “committed” to retail remittances, saying that they make up around 60% of Western Union’s revenue.
During an earnings call last month, company officials say they were looking to mergers and acquisitions as a driver of growth.
This came after a quarter in which revenues were flat, thanks in part to a decline in the company’s Americas business.
“As you know, remittances in the Americas have faced meaningful pressure that began early last year and continued through this winter, particularly across our key U.S. to Latin American corridors,” Western Union President and CEO Devin McGranahan said on an earnings call.
“We saw meaningful declines to markets like Mexico, Ecuador and Guatemala, driven by a combination of migration dynamics and U.S. immigration policy.”
The company recently closed two other acquisitions, those of Lana and Dash. Western Union also acquired Eurochange in April of last year.
