US Blocks Moneygram to China's Ant Financial

By Faith Magbanua, January 04, 2018 00:01 AM

Moneygram(Facebook/ Moneygram)

With an amount of $1.2bn (£880m) sale, the money transfer firm Moneygram sale has been blocked by the United States to China's Ant Financial.

It is the highest profile Chinese deal to be rejected by Washington since Donald Trump came to power.

Meanwhile, regulators overseeing foreign investments in the US had refused to support the takeover, the firms said.

The geopolitical environment had "changed considerably" since the merger was announced last year, they added.

However, the sudden collapse of the deal is a blow to the ambitions of Alibaba's billionaire executive chairman Jack Ma, who had promised President Trump that he would create a million US jobs.

Alibaba, which owns Ant Financial together with other Alibaba executives, have seen that the US market has a way to expand overseas in the face of fierce domestic competition like Tencent's WeChat, for example.

In addition to that, in a joint statement on Tuesday, Ant Financial and Moneygram stated that they had abandoned the deal "following the inability of the companies to obtain the required approval for the transaction from the Committee on Foreign Investment in the United States, despite extensive efforts to address the Committee's concerns,"

According to Moneygram's chief executive Alex Holmes, he said he that was "disappointed" by the outcome and noted the "geopolitical environment has changed considerably" in the year since the deal was announced.

Prior to that, on September, the US blocked the $1.3bn sale of US Lattice Semiconductor to Chinese-backed Canyon Bridge Capital Partners, citing concerns over the "potential transfer" of intellectual property from Lattice, which makes advanced computer chips.

Other deals that have been frustrated by US objections include China Oceanwide Holdings Group's $2.7bn purchase of US life insurer Genworth Financial, and Chinese buyout firm Orient Hontai Capital's $1.4bn acquisition of US mobile marketing firm AppLovin.

 

Related Article

Must Read

comments powered by Disqus

More from CCD

Chinese Catholics Warned by Government Not to Take Children to Mass

Another move by the Chinese government on religion is yet again reported in the news this week.

Study Reveals Impact of China’s Smog

Despite the efforts to clean the smog in China, a study reveals it has already a lasting impact in China.

Norwegian Pastor Awarded Honorary Citizen of Ankang, Shaanxi

On March 29, 2018, Rev. Johan Tidemann Johansen from the Lutheran Free Church of Norway was awarded with the title of honorary citizen of Ankang, Shaanxi.

South Korean Actress Who was Kidnapped by North Korea Passed Away

One of the most notable South Korean citizens once kidnapped by North Korea passed away.

John Chew, Retired Archbishop of Singaporean Anglican Diocese, Talks about “Tolerance”at Boao Forum

Bishop John Chew Hiang Chea, the retired 8th archbishop of Singaporean Anglican Diocese, spoke at the session of "Religious Leaders Dialogue" during the "Asian Davos" on behalf of Christianity.

Korean Air CEO's Second Daughter Suspended Violent Temper

Learn why this heiress become violent and what was done after her spiel.

Sina Weibo Receives Backlash from Gay Content Ban after Massive Outcry

A number of negative comments has been poured at Sina Weibo for controversial gay content ban.

Man Arrested in China Through CCTV Footage During a Concert

A Chinese man was apprehended after he was identified by the CCTV.