StoneX Group announced today that it will not be making an offer for CAB Payments, the payment processing company.
In October, CAB Payments revealed that it had received an unsolicited, non-binding proposal from StoneX. However, StoneX has now confirmed that it does not intend to proceed with an acquisition or offer for CAB Payments.
According to the statement released by StoneX, under Rule 2.8 of the UK Takeover Code, the company, along with any party acting in concert with it, retains the right to revisit the possibility of making an offer for CAB Payments within six months of today’s announcement, should specific conditions arise. These conditions include: (i) obtaining the agreement of the CAB Payments Board, (ii) a third party declaring a firm intention to make an offer for CAB Payments, (iii) CAB Payments proposing a Rule 9 waiver or reverse takeover, or (iv) a material change in circumstances, as determined by the Panel on Takeovers and Mergers.
StoneX Withdraws from Potential Acquisition of CAB Payment
While StoneX’s decision to forgo an offer for CAB Payments marks the end of the current negotiations, it leaves the door open for future developments under the outlined circumstances. This announcement follows the increasing interest in the payments sector, where strategic acquisitions and mergers are common as companies seek to expand their reach in the global financial services industry.
As of now, CAB Payments has not made any public comment regarding StoneX’s decision, but the company’s future in the payments landscape remains a point of interest for investors and industry analysts alike.
For CAB Payments, this move signals a pause in potential corporate changes, though the company’s strategic direction and market position will remain under scrutiny as the payments sector continues to evolve. The situation highlights the fluid nature of mergers and acquisitions, where external factors and shifting conditions can quickly alter the landscape.
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