Playtech, the major technology provider in gambling industry, was supposed to take over Plus500 and AvaTrade brokers, however at the moment the deal is not finalized due to regylatory concerns.
Paytech, established by billionaire Teddy Sagi, has witnessed its shares falling more than 12%. Plus500 shares has also seen better days plunging more than 20%.
Playtech agenda is to build an online retail financial business has been crushed with strict UK gambling regulations and higher taxes. Playtech has already reviewed over $1 billion expenses this year for forex trading merge. And now the $700 million deal for Plus500 is unlikely to receive an approval from UK Financial Conduct Authority by the end of this year.
Meanwhile, AvaTrade’s shareholders chose to cancel $105 million deal, as the Central Bank of Ireland announced the opposition to the deal. AvaTrade is based in Ireland and is regulated by CBI.
Playtech didn’t comment on the reviews and decisions of nether UK Financial Conduct Authority nor CBI, but added that it will definitely appeal CBI’s decision to cancel the deal.
Canceling the deal with Plus500 gives Playtech to seek another acquisition in order to explain in both financial and gaming arenas.
Unfortunately for Playtech, the company loses $5 million of non-refundable deposit to AvaTrade due to the latest termination of the deal. Luckily, there are no other monetary penalties related to the deal.