The Western Union CompanyNYSE
Western Union: Rising Tide May Fail To Lift The Big Boat
Darspal S Mann
Darspal S Mann
Mon, Jan. 4, 2:49 PM
- Incoming MoneyGram (MGI -3.8%) CEO Alex Holmes last week said he anticipates mergers in the remittance industry, noting 96 players in the $24B market for transferring cash from the U.S. to Mexico. "I would like them to go away ... I would like to buy them all."
- Analyst Mark Palmer expects it more likely that MGI is acquired rather than becoming an acquirer, and he sees Western Union (WU -2%) as the most likely buyer. He reminds of the positive market reaction in Western Union stock last May on rumors of a deal to buy MoneyGram.
- While a purchase of MoneyGram wouldn't help necessarily help Western Union adapt to the new realities of mobile and online, it would add customers and plenty of opportunity for cost-cutting.
Nov. 19, 2015, 7:04 AM
- Western Union (NYSE:WU) has made an informal offer to buy Australian online rival OzForex Group (OTCPK:OZFRY) for A$888M ($632M), aiming to boost its access to one of the world's largest cash transfer markets.
- The proposal comes two days after the WU said it would offer money transfer service on WeChat, the messaging app owned by Tencent Holdings.
Jul. 2, 2015, 3:52 PM
- Western Union (NYSE:WU) has tanked today, now -7% to its lowest point since mid-February, following the news that PayPal is swallowing money transfer provider Xoom for $890M, giving PayPal a big entree into international transfers.
- Citigroup is down on Western Union's prospects, for one: "Xoom has been a formidable competitor to Western Union’s online business, which although small (~5% of Western Union overall revenues), has represented nearly half of the growth in Western Union’s C2C segment in recent quarters."
- With nearly $2B in cash, Western Union could make a counter-bid -- and Xoom has traded slightly above PayPal's offer price today -- but it might not be able to win a bidding war with eBay.
- Evercore downgraded WU to Hold following the deal, as well.
May 6, 2015, 11:25 AM
- A combination of MoneyGram (MGI +28.2%) and Western Union (WU +7.2%) would give the new entity a money transfer market share of close to 20%, notes Financial Post.
- JP Morgan thinks a merger would include equity due to MoneyGram's high debt load.
- That development could cut into buybacks for Western Union and dent its credit rating.
- If a deal for MoneyGram is struck at $10 to $11, JP sees EPS accretion.
- Previously: Western Union reportedly in talks to buy MoneyGram; MGI +34.6% (May. 05 2015)
May 5, 2015, 5:28 PM
Jul. 5, 2011, 8:54 AM
Western Union (WU) inks a deal to buy Travelex Global Business Payments, a specialist provider of international business payments, for £606 million in cash. The deal bolsters WU's stance in the growing international business payments market. (PR)| Jul. 5, 2011, 8:54 AM
Jul. 1, 2011, 2:57 PM