U.S. halts Alibaba affiliate Ant Financial’s bid to acquire MoneyGram
Date: 2018-01-05   Author: Pankaj Singh  Category: #news

U.S. halts Alibaba affiliate Ant Financial’s bid to acquire MoneyGram

U.S. officials have apparently rejected a USD 1.2 bn deal of Chinese electronic payment company, Ant Financial to acquire the U.S. based money transfer company MoneyGram. This would have been one of the major business tie-ups between two economic powers, reportedly.

According to sources, the Chinese internet tycoon, Jack Ma, who owns Ant Financial failed to get the approval from U.S. regulatory bodies. Ant Financial, an affiliated company of the Chinese e-commerce group, Alibaba, said that they had failed to recollect clearance for their forthcoming deal from the Committee on Foreign Investment in U.S. – the one that investigates the buyouts of U.S. based companies from foreign investors. In fact, experts state that this refusal is indicative of the fact that Washington has enhanced its national security concern related to the acquisition of American companies by foreign groups.

Reports cite that in 2016, former president Barack Obama had banned Chinese companies from purchasing the German chip manufacturer, Aixtron, claiming threat to the national security of U.S. For the record, earlier in September 2017, the Trump government also blocked a bid of $1.3 billion placed by a consortium of several investors comprising China Venture Capital Fund for Lattice Semiconductor. For now, the failure of MoneyGram deal is likely to generate trouble other Chinese behemoths, reports quote.

Meanwhile, Trump administration and other politicians are concerned about Chinese trades and their negative influence on heavy industries such as steel across U.S. Moreover, lawmakers and officials of Trump administration have raised the concern about the Chinese investment in advanced technologies such as AI.

As per reliable sources, the Trump administration cleared that this decision came under the government’s efforts with regards to national security. In accordance, the legal community has also quoted that sharing consumer’s personal data with foreign companies would be used to access bank accounts and may be weaponized for military and civil purposes, on the grounds of which this acquisition is being blocked currently.



About Author


Pankaj Singh

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

More from Pankaj


Post Recommendents

Protein Hydrolysate for Animal Feed Application Market 2020 - Development Trends, Segmentation and Competitive Insights to 2026
Author: Rahul Varpe

Market Overview: -

The global Protein Hydrolysate for Animal Feed Application market was valued at USD 545 Million in 2016 and is predicted to reach USD 835 Billion by 2024.

Decresearch has recently published a study titled &ls...


Soluble Fibers market 2020 – 2026 | Emerging Opportunities and Growth Statistics
Author: Rahul Varpe

Market Overview: -

The global Soluble Fibers market was valued at USD 1.5 Billion in 2016 and is predicted to reach USD 5.5 Billion by 2025, growing at a CAGR of 16% from 2019 to 2024. Decresearch has recently published a study titled &l...


Global China Orange Juice Market Top Players are Nongfu Spring, China Huiyuan Juice Group, Citrus World, RITA Beverages
Author: Rahul Varpe

The Decresearch Inc., offers latest report titled Global China Orange Juice Market historical overview and detailed study on the current and future market of the China Orange Juice industry. “The China Orange Juice Market size was USD 655 mi...