Playtech's Retail FX Expansion Suspended as AvaTrade Deal Collapses Too
- A double whammy for the gaming company as its plans to expand into trading have been halted by financial regulators.
Hours after the announcement by Playtech that the company has chosen not to further pursue the acquisition deal with Plus500, the company has filed an announcement through the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term (LSE) that the shareholders of AvaTrade have suspended another major deal of the firm.
Back in May Playtech has announced a planned acquisition of Irish company AvaTrade for the sum of $105 million. The second blow to the plans of the gaming company to expand into financial services for retail investors leaves a question mark over the expansion of the firm into trading.
Despite the setback, the company will not be incurring any monetary penalty related to the deal except for forfeiting a previously announced $5m non-refundable deposit when the agreement was signed.
In its announcement the company is stating that it will continue its efforts to appeal the decision made by the Central Bank of Ireland that opposed the acquisition at the beginning of last month.
Shares of Playtech (LON:PTEC) are currently trading about 9 per cent lower, with the closing bell of the London Stock Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (LSE) 40 minutes away. The shares of the company barely reacted to the news as the fallout of this deal has apparently already been fully priced in by the market.
Questioning financial regulatory decisions has rarely helped any company in the industry in the past. Despite the approach chosen by Playtech, so far the company has not shared any updates on the progress of the "appeal" with the CIB.
Hours after the announcement by Playtech that the company has chosen not to further pursue the acquisition deal with Plus500, the company has filed an announcement through the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term (LSE) that the shareholders of AvaTrade have suspended another major deal of the firm.
Back in May Playtech has announced a planned acquisition of Irish company AvaTrade for the sum of $105 million. The second blow to the plans of the gaming company to expand into financial services for retail investors leaves a question mark over the expansion of the firm into trading.
Despite the setback, the company will not be incurring any monetary penalty related to the deal except for forfeiting a previously announced $5m non-refundable deposit when the agreement was signed.
In its announcement the company is stating that it will continue its efforts to appeal the decision made by the Central Bank of Ireland that opposed the acquisition at the beginning of last month.
Shares of Playtech (LON:PTEC) are currently trading about 9 per cent lower, with the closing bell of the London Stock Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (LSE) 40 minutes away. The shares of the company barely reacted to the news as the fallout of this deal has apparently already been fully priced in by the market.
Questioning financial regulatory decisions has rarely helped any company in the industry in the past. Despite the approach chosen by Playtech, so far the company has not shared any updates on the progress of the "appeal" with the CIB.