West­ern Union wants MoneyGram

Fiji Sun - - INTERNATIO­NAL BUSINESS - Feed­back: maraia.vula@fi­jisun.com.fj

West­ern Union Co. is seek­ing to ac­quire ri­val money trans­fer com­pany Amer­i­can MoneyGram In­ter­na­tional Inc., ac­cord­ing to a per­son fa­mil­iar with the mat­ter.

West­ern Union re­cently made a takeover of­fer for MoneyGram, said the per­son, who asked to not be iden­ti­fied be­cause the mat­ter isn’t pub­lic.

No fi­nal de­ci­sion has been made and West­ern Union could opt to not pro­ceed with a po­ten­tial deal, the per­son said.

Rep­re­sen­ta­tives for West­ern Union and MoneyGram de­clined to com­ment.

A trans­ac­tion would bring to­gether two of the largest U.S. providers of money trans­fer ser­vices.

The busi­ness has been in de­cline as more peo­ple rely on on­line pay­ments to move money around the world.

MoneyGram

While MoneyGram has ag­gres­sively grown dig­i­tal trans­ac­tions, they made up just 18 per cent of its money trans­fers in the first quar­ter, the com­pany re­ported last month. Ant Fi­nan­cial Ser­vices Group, the Chi­nese fi­nan­cial ser­vices con­glom­er­ate, agreed to ac­quire MoneyGram in 2017 but aban­doned the deal af­ter push back from U.S. na­tional se­cu­rity reg­u­la­tors.

MoneyGram rose as high as 74 per cent in late trad­ing Mon­day.

The stock closed up 6.2 per cent to US$2.59 (FJ$5.69), giv­ing the com­pany a mar­ket value of about US$164 mil­lion (FJ$360m).

It also has about US$878m 1,930.28m)of debt.

West­ern Union rose 3.5 per cent to close at US$20.71 (FJ$45.53), giv­ing (FJ$ it a mar­ket value of bil­lion (FJ$ 18.6b). about US$8.5

West­ern Union made a takeover of­fer for Amer­i­can ri­val MoneyGram.

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