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

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


Sunil Hebbalkar

Sunil Hebbalkar

Sunil currently works as an associate content writer at AlgosOnline. A Post graduate mechanical design engineer by qualification, he worked as an intern at the defense lab for one year in the engine design and development department before switching his professional g...

Read More

More from Sunil


Post Recommendents

Red Dot Power plans to build 50 EV charging stations by 2019
Author: Ojaswita Kutepatil

Red Dot Power, the Singapore-based electricity retailer has recently announced that it will be investing around SGD 500,000 to install 50 electric vehicles charging stations in the nation by 2019. Reportedly, the firm wo...


Greencoat Renewables to purchase yet another wind farm in Ireland
Author: Dhananjay Punekar

Greencoat Renewables PLC, an Ireland based renewable-infrastructure firm, has decided to acquire Lisdowney, a 9.2 MW wind farm based in Co Kilkenny, for EUR 22.5 million. According to the

Nokia to opt between a sale or shut-down for its digital health unit
Author: Dhananjay Punekar

In a major turn of events witnessed across the digital health industry, Nokia has declared to have begun evaluating various alternatives for its online health activities. The firm’s decision apparently comes as a...