Global News

U.S. blocks sale of Moneygram to Chinese firm

U.S. blocks sale of Moneygram to Chinese firm

Alex Holmes, chief executive officer of MoneyGram, cited a "change in the geopolitical environment" since it first announced the proposed transaction previous year.

However, Euronet argued the takeover shouldn't be cleared because of the proximity to United States military bases of many MoneyGram vendors.

Ant Financial is already a behemoth in China, providing services from wealth management and insurance to credit checks and consumer loans.

MoneyGram is calling off its merger with a Chinese financial services giant after failing to get approval from the USA government. But now it is not to be, and it will be interesting to see what approach Ant - which is hotly tipped to go public in a massive IPO - will take to fill the void beyond this new "strategic business cooperation" with MoneyGram.

The deal between Ant Financial, an affiliate of Jack Ma's tech company Alibaba, and the American money transfer service was first announced in January 2017.

After a year of trying to appease US regulators, Ant Financial and MoneyGram have terminated their merger agreement, challenging the Chinese company's strategy for global expansion.

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.




Ant's US$1.2 billion (S$1.6 billion) deal for MoneyGram would have added a network of 350,000 agent locations in more than 200 countries and territories that it says reaches billions of accounts.

"Should this transaction be approved, the Chinese government would gain significant access to, and information on, financial markets and specific global consumer money flows", they wrote.

The Chinese government holds a 15% stake in Ant Financial, according to the congressmen, who are both Republicans.

Alibaba, which owns Ant Financial together with Alibaba executives, saw the United States market as a way to expand overseas in the face of fierce domestic competition from the likes of Tencent's WeChat.

Under terms of the agreement between the two companies, Ant will pay MoneyGram a $30 million termination fee.

Such firms that want to work more closely together better get used to developing workarounds. But despite "extensive efforts" to address the concerns of the CFIUS, the companies could not obtain the required approval and the deal was mutually terminated today.

Update, Jan. 4: This story was updated with comment from Ant Financial.


  • Nick Kyrgios Reaches Brisbane International Final

    Nick Kyrgios Reaches Brisbane International Final

    However, after saving five break points early in the contest, Kyrgios soon took charge of proceedings and ultimately won easily . The Australian's world ranking will improve to 18 after reaching the Brisbane final and will climb to 17 if he claims the title.
    NSA Ajit Doval met Pakistani counterpart in Thailand: MEA

    NSA Ajit Doval met Pakistani counterpart in Thailand: MEA

    The external affairs ministry said: "The focus of the talks was on terror, cross-border terrorism". On December 31 the newspaper The Indian Express revealed the meeting between Doval and Janjua.
    Eden Hazard voted into UEFA Fan's Team of the Year

    Eden Hazard voted into UEFA Fan's Team of the Year

    Marcelo, Sergio Ramos , Toni Kroos and Luka Modric join Ronaldo in the team, while Messi is the only Barcelona player to feature. Listen to the latest news on our 5 radio stations Legend FM, Viti FM, Radio Sargam, FM96 and Navtarang.
  • Koreas start first official talks in two years

    Koreas start first official talks in two years

    North Korea has earned only two medals in past Winter Games, which it has attended sporadically, starting in 1964. Trump had also assured Moon there would be no military activity during the period of inter-Korea dialogue.
    Truth or Dare Trailer & Release Date

    Truth or Dare Trailer & Release Date

    Check out the scary trailer below! Blumhouse has debuted the trailer for their upcoming horror movie Truth Or Dare . Except this time the consequences for not telling the truth or doing the dare are higher: you die.
    Tamil Nadu transport unions withdraw strike, to resume work from Friday

    Tamil Nadu transport unions withdraw strike, to resume work from Friday

    While the unions wanted a 2.57 times hike, the government offered only 2.44, resulting in the stalemate. The workers struck work citing other demands also like pending dues for serving and retired personnel.
  • Price Performance Review on Shares of Chile Index MSCI Ishares (ECH)

    The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend.
    A Player's Preview: Oregon State

    A Player's Preview: Oregon State

    It was the first time the Ducks (12-5, 2-2 Pac-12) have beaten a Top 15 team on the road since 2007 when it won at Arizona . UCLA 83, Utah 64: Aaron Holiday scored 20 points to lead the host Bruins (13-4, 4-1 Pac-12) past the Utes (10-6, 2-3).
    Hazard says he´ll sign Chelsea contract after Courtois

    Hazard says he´ll sign Chelsea contract after Courtois

    The Chelsea goalkeeper was the first to confirm that he will agree a new deal and urged his compatriot to do the same. However, he has said that he will only sign a new deal if his teammate Thibaut Courtois is also given a new deal.
  • WWE star John Cena teaming up with Nickelodeon for three projects

    WWE star John Cena teaming up with Nickelodeon for three projects

    In addition to joining Rise of the Teenage Mutant Ninja Turtles , Cena is expanding his partnership with Nickelodeon . Regarding the Ninja Turtles series , Cena will voice an original villain named Baron Draxum.
    London mayor accused of relaunching 'Project Fear' with taxpayer-funded Brexit report

    London mayor accused of relaunching 'Project Fear' with taxpayer-funded Brexit report

    The report found that 87,000 jobs would be lost in London alone with the capital's economic output predicted to be down by 2% by 2030.
    Pakistani court directs police to arrest Zainab rape-murder culprit

    Pakistani court directs police to arrest Zainab rape-murder culprit

    News reports say there is surveillance video showing Zainab being led away from her home by a man. We don't want an innocent to be presented as the culprit and killed just to wash this case'.