Playtech has pulled out of £460m deal to buy retail forex trading shop Plus500, citing regulatory difficulties.

Playtech and Plus500

In a statement released on Monday, Playtech said: “Following an update from the [UK] Financial Conduct Authority late in the afternoon of Friday, November 20, and having considered its position over the weekend, the board of Playtech is now of the view that the steps being proposed to address these concerns will not sufficiently satisfy the FCA to enable Playtech to obtain the FCA's approval by December 31, 2015, and is therefore withdrawing its change of control application.”

Following the news, shares in Playtech fell by around 12 per cent in early trading before recovering slightly. Plus500’s share value plunged by more than 20 per cent before recovering most of the fall.

The FCA’s specific concerns relating to the deal have not been revealed.