Playtech Plus500 deal at risk following further FCA delays

The decision by the UK Financial Conduct Authority (FCA) regarding Playtech’s $460 million acquisition of contract broker Plus500 has been pushed back to December.

Playtech’s acquisition sees a further delay, having been stalled in September following UK regulatory delays, despite gaining approval from the Cyprus Securities and Exchange Commission.

On Wednesday Plus500 governance issued a statement that the terms of the agreed acquisition are such that the deal may be terminated if the acquisition is not completed by 31 December.

“Playtech has informed Plus500 that the FCA’s regulatory assessment is a confidential process between the FCA and Playtech. Playtech will only announce further details on conclusion of the process.”

At present little detail is known as to why the UK FCA has stalled the progress of the Plus500 acquisition. UK financial news sources have stated that the UK FCA may be reviewing Playtech’s ongoing dispute with the Central Bank or Ireland regarding its financial services acquisition spree in 2015

The London listed igaming technology provider has moved to enter the financial trading sector through corporate acquisition. Along with Plus500, in 2015 Playtech has completed deals for FX Platform TradeFX for €208 million (April), binary/currency trader Ava Trade ( $105 million July).

Of its financial acquisitions, Plus500 has proved to be the most challenging for Playtech governance, who were met by opposition from the company’s biggest investor Odey Asset Management in June, who stated that Playtech has undervalued Plus500 operations.

Plus500 had seen its operations halted by the UK FCA following a failure to meet anti-money laundering standards which saw its trading services halted