Anbang’s $ 1.6b Fidelity & Guaranty bid will be allowed to lapse: sources

China’s Anbang Insurance Group will let its agreement to acquire US annuities and life insurer Fidelity & Guaranty Life ( FGL) for $ 1.6 billion lapse, after failing to secure all the necessary regulatory approvals, people familiar with the matter said on Sunday.

The development casts new doubt on Anbang’s commitment to US deals, following its abandoned attempt last year to acquire Starwood Hotels & Resorts Worldwide Inc for $ 14 billion.

Marriott International Inc ended up buying Starwood.

While Anbang’s bid received clearance from the Committee on Foreign Investment in the United States ( CFIUS), a US government panel that scrutinizes deals for potential national security concerns, it could not get past some US state regulators.

FGL had extended its merger agreement with Anbang, which was signed in November 2015, to Monday after it was set to expire on February 8. Had Anbang secured a public hearing with Iowa’s financial regulator by Monday, it could have extended the expiration date to May 31.

However, Anbang failed to meet the conditions for any further extension, the sources said. Anbang also needed approval from New York financial regulators, but it has abandoned efforts to secure it, the sources added.

The sources asked not to be identified because the recent developments are confidential.

The sources did not say why Anbang could not secure approvals from US state regulators after clearing the CFI-

US, but noted that the group had resisted making some of the disclosures required.

FGL said in February it would solicit other acquisition offers as part of its merger agreement extension with Anbang. Negotiations between FGL and other bidders are continuing, the sources said.

FGL declined to comment, while Anbang did not immediately respond to requests for comment.

Established in 2004, Anbang burst onto the global scene by signing more than $ 30 billion worth of corporate deals in recent years. Its investments included the $ 1.95 billlion purchase of the Waldorf Astoria Ho

Little is known about Anbang’s funding and shareholding structure, partly because it is a private company. Corporate records in China show Anbang is owned by 39 privately held and little- known companies scattered across China.