Mamdani urges New York state to block Western Union deal

NEW YORK - Global mergers are not typically on the agenda of a New York City mayor.

But Mayor Zohran Mamdani is weighing in on a proposed deal that he says would financially harm many of the city’s immigrants.

In a letter, Mamdani urged the New York State Department of Financial Services to block Western Union’s proposed US$500 million (S$636.3 million) acquisition of International Money Express, a firm that sends money transfers from the United States to Latin America.

The April 24 letter, which The New York Times obtained, argues that a combination of the companies, both large players in New York City, could lead to higher fees and worse service for customers.

Western Union and International Money Express, known as Intermex, operate retail locations where recent immigrants transfer money, often to relatives in their native countries.

These remittances, which total billions of dollars a year, are a vital resource for immigrants who do not have access to traditional bank accounts.

Across the United States, remittances have been increasing as immigrants have sent home as much money as they can before they may be deported.

“Remittances are a crucial lifeline for New Yorkers and their communities abroad,” Mamdani wrote in the letter.

He added that the deal “would further strain the already challenging economic circumstances facing New York City’s immigrant communities”.

The deal, announced in August 2025, has been expected to close in mid-2026, subject to approval from authorities including the Justice Department and the nation’s state financial regulators.

In a response to Mamdani’s letter, Western Union told the Department of Financial Services that the deal would “ensure that accessible and affordable” services remained available for New York City immigrants by helping it compete against online-only rivals.

Western Union said it was “committed” to retail remittances, adding that they now account for roughly 60 per cent of its revenue.

“Failing to support the combination would merely create the illusion of greater competition by undercutting the ability of Western Union and Intermex, as a combined enterprise, to continue to provide, improve and innovate their services at retail locations,” the company said in its response.

It also said that New York’s Department of Financial Services was the only state regulator that hadn’t approved the deal.

In a statement on May 13, Western Union said that it was “engaging constructively” with the department as part of the review process and that “we remain confident in the transaction and our ability to meet all regulatory requirements”.

Intermex did not immediately respond to a request for comment. Semafor earlier reported Mamdani’s letter.

Mamdani’s role as an antitrust enforcer may be limited, given the relatively few deals that require state or local approval.

But one of his influential advisers has a background in bringing a progressive lens to mergers and acquisitions.

Lina Khan, the chair of the Federal Trade Commission in the Biden administration, was co-chair of Mamdani’s transition team after his election in November 2025 and remains an outside adviser to him.

By voicing his objection to the Western Union deal, Mamdani is drawing attention to another issue of affordability, which was a central tenet of his campaign and remains a focus of his fledgling administration, whether the topic is the cost of rental housing or World Cup tickets. NYTIMES