Western Union makes takeover offer to MoneyGram: report

Money transfer firm Western Union has made a takeover offer to MoneyGram International, according to a report by Bloomberg.

Citing a source familiar with the process, Bloomberg reported that while a takeover offer has been submitted, "[n]o final decision has been made and Western Union could opt to not proceed with a potential deal, the person said."

The publication added that MoneyGram and Western Union declined to comment when reached. MoneyGram's stock price rose sharply during after-hours trading, according to public market data. 

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Should the deal go through, Western Union would acquire a business that has an existing business relationship with distributed ledger startup Ripple, which owns a 9.95% stake in Moneygram. As previously reported by The Block, MoneyGram uses Ripple's On-Demand Liquidity product to facilitate cross-border remittances, and Ripple pays Moneygram in the form of XRP as part of an incentive program focused on market development.

Western Union previously conducted a pilot program with Ripple, focused on payment settlement.

Image Credit: DW labs Incorporated / Shutterstock.com