Western Union is trying to buy from MoneyGram International, a rival money transfer company, as disclosed by a related person. Western Union recently launched a MoneyGram purchase offer, said the person, who asked not to be identified as the matter is not yet public. A final decision has not been reached and, the source added, Western Union may be inclined not to follow through on a probable deal. Notably, representatives of Western Union and MoneyGram declined to comment.
This acquisition would unite two of the largest US providers of money transfer services.
The business has been declining as more people are more confident in online payments to move money around the world. The reality is that MoneyGram has had a strong growth in digital transactions, but these only represent 18 percent of its money transfers in the first quarter, as announced by the company the previous month.
Ant Financial Services Group, a Chinese financial services conglomerate, agreed to buy MoneyGram in 2017, but ultimately decided not to, after facing obstacles from U.S. national security regulators. MoneyGram shares ended up 6.2 percent, $ 2.59, raising the company’s market value to around $ 164 million. It also has approximately $ 878 million in debt.