Euronet launches rival bid to Ant’s MoneyGram offer

US- based electronic payments company Euronet Worldwide Inc launched a $ 1 billion bid for rival MoneyGram International Inc on Tuesday, saying its bid would face less regulatory scrutiny than a lower offer by China’s Ant Financial Services Group.

Ant Financial, an affiliate of Alibaba Group Holding, said the company remained committed to its deal.

“MoneyGram and Ant Financial continue to work cooperatively under the terms of our merger agreement, and together, we are making progress on schedule toward obtaining all required regulatory and shareholder approvals,” the company said in a statement.

MoneyGram said it would “carefully review and consider” the proposal from Euronet.

“MoneyGram remains subject to the terms of the definitive merger agreement with Ant Fi- nancial and MoneyGram’s board has not changed its recommendation in support of the merger agreement with Ant Financial,” it said.

Ant Financial said in January it would acquire Dallas- based MoneyGram for $ 13.25 per share, or about $ 880 million, in its first major move to expand its presence overseas.

MoneyGram is one of the biggest players in the global remittance market and a takeover would enable Kansas- based Euronet to better compete against digital startups that are transforming the money transfer business.

“Euronet is the No. 4 traditional offline global player via its Ria brand” so its bid is not a surprise, said Michael Kent, the CEO of money transfer business Azimo.

Euronet focuses more on independent agents, while MoneyGram targets large retailers and national post offices.