Playtech Online Gambling Folds On Plus500 Merger

Published Monday, November 23, 2015 - Online-Casinos.com
Playtech Online Gambling Folds On Plus500 Merger

Created in 2008 Plus500 is a company providing online trading services to retail customers. The Israel based company with regulated entities in the UK, Cyprus and Australia provides trading in CFDs or contract for difference which are in effect financial derivatives which allow traders to take advantage of prices moving up or prices moving down on underlying financial instruments.

Playtech the software developer announced a plan to merge with Plus500 last June and was confident the regulatory agency in the UK would approve of the move by September of this year. Back in May of 2015 The Financial Services Authority fined Plus500UK Limited £205,128 for failing to provide accurate and timely transaction reports to the FSA in respect of all the reportable transactions they carried out. Then soon after the company was subject to massive value loss when its stock plunged almost 60 percent due to the company's move to freeze 55 percent of its UK based trader accounts. The UK Financial Conduct Authority had ordered Plus500UK to freeze the accounts as part of a review into anti-money-laundering controls.

Now however in the final hours before the merger Playtech has decided it would be unwise to continue with the move stating that it would be able to comply with the concerns of the FCA. Playtech stated, “The company has discussed with Plus500 the consequences of the recent developments with the FCA and has agreed to the termination of the merger agreement,” adding, “Accordingly, the acquisition of Plus500 will not be proceeding as planned. Playtech will not incur any financial penalties with respect to the termination of the acquisition of Plus500. Playtech has no immediate plans with respect to its existing 9.9% holding in Plus500.”

The chief executive officer of Plus500 Gal Haber commented, “Following the agreement with Playtech that the merger between the companies will not proceed, we can confirm that our business is in good shape for a successful future as an independent company.``

 

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