Playtech is now seeking clarification on the reasons for the objection and is about to discuss the issue with the CBI.
Central Bank of Ireland opposes acquisition of AvaTrade by Playtech
The proposed $105 million acquisition of FX broker AvaTrade by Playtech PLC (LON:PTEC) has hit an obstacle.
In an update today, Playtech said that it had received a letter from the Central Bank of Ireland (CBI) opposing the proposed deal.
Playtech said it will be seeking clarification from the CBI today and will discuss certain issues raised in the letter. Playtech believes these issues can be addressed to the CBI’s satisfaction.
The company noted that it had already received approval for the Ava Trade acquisition from the Financial Services Commission in the British Virgin Islands.
Today’s news comes as a bit of surprise to many, as the AvaTrade acquisition was expected to receive all necessary regulatory approvals and to be completed in late September or early October.
The worries regarding the AvaTrade deal add to concerns about delays in receiving regulatory nods of approval for the proposed acquisition of Plus500 Ltd (LON:PLUS). Playtech stated today that it continues to work towards securing the one outstanding regulatory approval, having already received the consent of the Cyprus Securities Exchange Commission.
To view the official regulatory filing, click here.
David Hobart
David Hobart is Managing Director of FinAffiliates Limited, the UK media group behind LeapRate, AskTraders and a network of more than 30 financial and trading titles published across several languages and regulated markets. He writes on the commercial side of the industry: broker marketing, client acquisition, affiliate strategy and the editorial standards that hold it together. He is based in North Norfolk.
