Gambling technology company Playtech said it was terminating its agreement to buy retail forex trading company Plus500 Ltd as it was unlikely to obtain approval for the deal from UK's Financial Conduct Authority by December end.

Playtech, founded by Israeli billionaire Teddy Sagi, had agreed to buy Plus500 for about $700 million in June. The company said on Monday that following an update from the FCA on Friday, it was of the view that the steps being proposed to address certain concerns would not sufficiently satisfy the regulator to enable the company to obtain approval by December 31st.

Playtech said it would not incur any financial penalties with respect to the termination and that it had no immediate plans related to its existing 9.9 per cent holding in Plus500.

In October, Playtech said it was formally challenging a Central Bank of Ireland decision opposing its $105-million acquisition of online derivatives broker Ava Trade.

Reuters