clear
Sunday June 17th, 2018 9:37PM

US bars $1.2B Chinese acquisition of MoneyGram

By The Associated Press
Related Articles
  Contact Editor

BEIJING (AP) — Chinese billionaire Jack Ma has dropped his bid to buy U.S. money transfer company MoneyGram after Washington rejected the $1.2 billion deal in a fresh example of heightened American scrutiny of Chinese investment.

MoneyGram International Inc. and Ma's Ant Financial Services Group failed to gain approval from the Committee on Foreign Investment in the United States despite efforts to respond to its concerns, MoneyGram CEO Alex Holmes said in a statement Tuesday. The panel reviews proposed foreign acquisitions of U.S. companies on national security grounds.

The failure is a setback to Ma's ambitions to expand into global markets.

MoneyGram shares fell 6.8 percent in after-hours trading to $12.40 a share.

"The geopolitical environment has changed considerably since we first announced the proposed transaction with Ant Financial nearly a year ago," Holmes said. "Despite our best efforts to work cooperatively with the U.S. government, it has now become clear that CFIUS will not approve this merger."

The grounds for possible CFIUS objections were not immediately clear.

Ma is the founder of Alibaba Group, the world's biggest online commerce platform by total sales. He was among the stream of Chinese business leaders who visited U.S. President Donald Trump at Manhattan's Trump Tower last January following his election.

At the time, Alibaba said it could create 1 million jobs in the United States by helping small businesses sell their products to Chinese and other Asian consumers. Trump told reporters in the Trump Tower lobby that Ma was a "great, great entrepreneur."

Ant Financial, which is linked to Alibaba, agreed in April to buy MoneyGram. Calling off the deal means Ant Financial will pay a $30 million termination fee to MoneyGram, the statement said.

CFIUS has approved almost all proposed Chinese investments but a handful of high-profile rejections have made potential Chinese investors skittish.

In September, Trump vetoed the proposed $1.3 billion acquisition of a semiconductor manufacturer, Lattice Semiconductor, by a Chinese government-financed buyer, Canyon Bridge Capital Partners, after CFIUS objected.

A White House statement at that time cited the importance of "semiconductor supply chain integrity" and the potential transfer of technology to a foreign buyer.

Chinese companies are on a global buying spree to acquire technology and brands. Some purchases of high-tech companies have prompted criticism they might represent security threats or the loss of important national assets.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Industries, AP Business - Financial Services
© Copyright 2018 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Bitter cold tests winter-wise, delivers shock to South
The bitterly cold temperatures gripping much of the nation have been blamed for at least a dozen deaths.
11:04PM ( 33 minutes ago )
US beats Russia, advances to world junior semifinals
Kieffer Bellows scores 2 goals to lead U.S. in 3-2 win over Russia in world juniors quarterfinal
11:03PM ( 35 minutes ago )
President declares disaster over deadly California wildfire
President Donald Trump has declared a major disaster in California over a wildfire that destroyed more than 1,000 buildings
10:54PM ( 44 minutes ago )
Associated Press (AP)
Get a pencil: California marijuana-tracking system not used
Get a pencil: California's recreational marijuana market opens without plant-tracking system
9:27PM ( 2 hours ago )
Get a pencil: California's marijuana-tracking system delayed
Get a pencil: California's recreational marijuana market opens without plant-tracking system
7:26PM ( 4 hours ago )
Box Office Top 20: 'Star Wars' narrowly beats 'Jumanji'
Facing some stiff competition from "Jumanji," "Star Wars: The Last Jedi" just barely topped the box office for the third weekend in a row with $66.8 million in additional earnings across the holiday weekend
6:08PM ( 5 hours ago )
AP Business
'Wild Thoughts' for Weight Watchers
Weight Watchers has hired hit-maker DJ Khaled to promote its weight loss plan on social media
4:29PM ( 7 hours ago )
GOP Rep. Shuster, transportation panel chairman, to retire
Pennsylvania Rep. Bill Shuster, the powerful GOP chairman of the House Transportation and Infrastructure Committee, says he won't run for re-election
4:02PM ( 7 hours ago )
Leader of NYC Ballet retiring amid misconduct investigation
The longtime leader of the New York City Ballet is retiring in the midst of an investigation into accusations of sexual misconduct by him; Peter Martins tells board members he continues to deny sexually harassing or abusing members of the company
12:45AM ( 22 hours ago )
AP Business - Corporate News
US stocks ring in 2018 with gains as technology leads again
After strong gains in 2017, stocks get off to a positive start and set more records as technology and health care companies rise in the first day of trading in the new year
5:42PM ( 5 hours ago )
McDonald's tests fresh beef in another burger
McDonald's is testing fresh beef in another burger, the latest move by the chain to improve its image as more people shun processed foods
2:52PM ( 8 hours ago )
US stocks start 2018 with gains as technology leads again
After strong gains in 2017, stocks get off to a positive start as technology companies and retailers rise in the first day of trading in the new year
2:01PM ( 9 hours ago )
AP Business - Industries
AP Business - Financial Services
Bitter cold tests winter-wise, delivers shock to South
The bitterly cold temperatures gripping much of the nation have been blamed for at least a dozen deaths.
11:04PM ( 33 minutes ago )
US beats Russia, advances to world junior semifinals
Kieffer Bellows scores 2 goals to lead U.S. in 3-2 win over Russia in world juniors quarterfinal
11:03PM ( 35 minutes ago )
President declares disaster over deadly California wildfire
President Donald Trump has declared a major disaster in California over a wildfire that destroyed more than 1,000 buildings
10:54PM ( 44 minutes ago )
Strong factory data, Wall St gains boost Asian share prices
Strong manufacturing data and overnight gains on Wall Street are giving Asian markets a boost
10:32PM ( 1 hour ago )
VA document: Gunman who killed deputy had fled mental ward
A Veterans Affairs document obtained by The Associated Press says the gunman who killed a Colorado sheriff's deputy escaped from the mental health ward of a VA hospital in Wyoming in 2014 but was located and returned
10:23PM ( 1 hour ago )