AvaTrade Acquisition by Playtech PLC Facing an Unexpected Hurdle

The Central Bank of Ireland has denied permission for the acquisition without providing clarification of the reasons for it.

According to a regulatory filing submitted to the London Stock Exchange on Monday, Playtech PLC (LON:PTEC) is facing a major hurdle for the acquisition of AvaTrade from none other than the Central Bank of Ireland. The company has announced that it received a letter from the regulator last Friday, which surprisingly revealed opposition to the deal from the monetary authority.

Having taken legal advice regarding the circumstances at hand, the Company will be seeking clarification from the CBI today and engaging with them in order to discuss certain issues raised in the letter which the Company believes can be addressed to the CBI’s satisfaction.

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One of the possible reasons for the opposition of the Central Bank of Ireland is the main business of Playtech, which is more closely related to gaming than financial trading, although in recent months the company has taken major steps to expand its financial services portfolio.

Playtech PLC has already received approval for the AvaTrade acquisition from the Financial Services Commission in the British Virgin Islands.

In the meantime the company is awaiting regulatory approval by the U.K. FCA for the acquisition of Plus500. The firm will continue to work towards securing the one outstanding regulatory approval, having already received approval from the Cyprus Securities Exchange Commission.

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