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U.S. Blocks Chinese Company’s $1.2 Billion Takeover Of MoneyGram

Alibaba Executive Chairman Jack Ma visited President-elect Donald Trump in Jan of 2017, as his association was rising an try to buy MoneyGram.

Mike Segar/Reuters


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Mike Segar/Reuters

Alibaba Executive Chairman Jack Ma visited President-elect Donald Trump in Jan of 2017, as his association was rising an try to buy MoneyGram.

Mike Segar/Reuters

Chinese billionaire Jack Ma’s yearlong bid to buy U.S. income send association MoneyGram is now over, after American regulators objected to a $1.2 billion deal. Ma’s Ant Financial Services Group has forsaken a bid for a Dallas-based company.

Announcing a peaked merger, MoneyGram CEO Alex Holmes said, “The geopolitical sourroundings has altered extremely given we initial announced a due transaction with Ant Financial scarcely a year ago.”

Holmes added, “Despite a best efforts to work cooperatively with a U.S. government, it has now turn transparent that [the Committee on Foreign Investment in a United States] will not approve this merger.”

The CFIUS, a section of a Treasury, has not supposing a reasons for rejecting a deal.

In Hong Kong, a South China Morning Post says it’s a pointer of “a domestic meridian that is not welcoming to Chinese firms.”

The rejecting comes notwithstanding Ma’s attempts to form ties with a Trump administration; he visited Trump Tower in Jan of final year.

“MoneyGram shares fell scarcely 7 percent in after-hours trade following a news,” NPR’s Rob Schmitz reports from Shanghai. “Ma, a owner of Alibaba, a world’s largest online commerce platform, met with [President-elect] Trump final year and pronounced he could emanate 1 million jobs in a U.S. by assisting tiny businesses sell their products to a Chinese.”

The reversal leaves Ma’s Ant Financial Services Group to find other ways to strech a enlargement goals. MoneyGram has critical partnerships with retailers such as Walmart and CVS. The association claims 30,000 locations in a U.S. and some-more than 350,000 in countries around a world.

The unsuccessful partnership would expected have given Alibaba a vital corner in one facet of a adversary with another Chinese tech giant, Tencent. It would also have signaled America’s receptiveness to combining new and tighten mercantile ties with Chinese businesses.

“U.S. companies active in China should be heedful of repercussions,” The Financial Times says in an research piece.

In creation a understanding to buy MoneyGram, Alibaba had won a behest fight with Kansas-based Euronet Worldwide. In a end, MoneyGram supposed an offer from Alibaba value $18 a share, violence out Euronet’s cost of some-more than $15 a share. MoneyGram’s batch sealed on Tuesday around $13.30 — though it fell as low as $12 overnight.

Tuesday night, Euronet released a matter observant that while appropriation MoneyGram is still corroborated by “compelling blurb logic,” a association would not pledge a new offer would be made.