US blocks MoneyGram sale to China’s Ant Financial
The companies will now look for other ways to work together in China, India, the Philippines, other Asian markets and the US
New York — A US government panel rejected Ant Financial’s acquisition of US money transfer company MoneyGram International over national security concerns, the companies said on Tuesday. This is the most high-profile Chinese deal to be torpedoed under the administration of US President Donald Trump. The collapse of the $1.2bn deal represents a blow for Jack Ma, the executive chairman of Chinese internet conglomerate Alibaba Group Holding, who owns Ant Financial together with Alibaba executives. He was hoping to expand Ant Financial’s footprint amid fierce domestic competition from Chinese rival Tencent Holdings’ WeChat payment platform. Ma, a Chinese citizen who appears frequently with leaders from the highest echelons of the Communist Party, had promised Trump in a meeting a year ago that he would create 1-million US jobs. MoneyGram shares were down 8.5% at $12.06 in after-market trading. The companies decided to terminate their deal after the Committee on Foreign Investment in the...
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