The recent debacle with MoneyGram and Ant Financial bid was seemingly rejected again, for the third time, by United States national-security panel. The recently waived proposition is a clear stomp on the doors of Chinese investors who are looking to start their dominating run on Asian countries and bringing it to the U.S.
MoneyGram is a United States based money transferring company which is accountable to a massive of money sent online; the company is also boasting a massive 200 countries on their list. Ant Financial, which is one of the companies that are under Alibaba’s founder, Jack Ma, and his massive number of successful companies under his belt.
Ant Financial Details
Furthermore, Ant Financial’s conception is from the massive popularity of their e-commerce business; the company served as their payment business for their massive Alibaba Group Holdings Ltd. Ant Financial has been regarded as one of the biggest privately owned financial institution in China, with chart-topping daily transactions.
The privately own financial institution has been then improved and saw several expansions which led them a great spot in the U.S. Recently, the financial institution has been working an acquisition deal with MoneyGram. According to reports, the deal is currently standing at a massive $1.2 billion.
Jack Ma’s decision to acquire MoneyGram will give them a strong grasp on the United States market and will give them the alluring chance to compete with international financial firms such as; Morgan Stanley, JP Morgan, and even the prominent Bank of America.
Ant Financial will most likely have their hands on a massive 2.4 billion banking and mobile account in the 200 countries that MoneyGram governs. The massive number; unfortunately, the deal has been scrapped again this week. This deal is a big opportunity for Ma to enter and penetrate a bigger market and expand on a bigger avenue for their services.
According to MoneyGram’s CEO Alex Holmes, "The geopolitical environment has changed considerably since we first announced the proposed transaction with Ant Financial nearly a year ago," Holmes also added that, "Despite our best efforts to work cooperatively with the U.S. government, it has now become clear that CFIUS will not approve this merger,"
According to the Treasury Department, which chairs CFIUS, "CFIUS reviews focus on national security concerns and Treasury takes the role as Chair of CFIUS very seriously, to ensure that CFIUS identifies and addresses any national security concerns posed by such foreign investment,"
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