Ant Fi­nan­cial to try again for US ap­proval deal for MoneyGram

Global Times US Edition - - BIZOVE -

China-based pay­ments com­pany Ant Fi­nan­cial is plan­ning to re­sub­mit its ap­pli­ca­tion for US re­view of a deal to buy MoneyGram In­ter­na­tional Inc for $1.2 bil­lion, a source fa­mil­iar with the matter said on Fri­day.

Ant Fi­nan­cial and MoneyGram have al­ready re­filed for clear­ance from Com­mit­tee on For­eign In­vest­ment in the United States (CFIUS) when they were un­able to se­cure it within an as­sess­ment pe­riod af­ter the first ap­pli­ca­tion, Reuters re­ported in July, cit­ing sources.

“We are not com­ment­ing on the CFIUS process, but we are con­tin­u­ing to work with the var­i­ous reg­u­la­tory agen­cies and re­main fo­cused on clos­ing the trans­ac­tion by the end of the year,” the com­pany said in a state­ment.

Ant Fi­nan­cial’s lat­est at­tempt for ap­proval would be its third as the max­i­mum time of 75 days for as­sess­ing such ap­pli­ca­tions nears com­ple­tion.

The CFIUS re­views ac­quisi- tions by for­eign en­ti­ties in the US for po­ten­tial na­tional se­cu­rity risks.

A CFIUS re­file in­di­cates in­creased gov­ern­ment scru­tiny and more deals have been re­sub­mit­ted to CFIUS since the in­au­gu­ra­tion of US Pres­i­dent Don­ald Trump in Jan­uary.

CFIUS had ob­jected to at least nine ac­qui­si­tions of US com­pa­nies by for­eign buy­ers as of July 20, Reuters re­ported, cit­ing peo­ple fa­mil­iar with the matter.

Ant Fi­nan­cial fi­nal­ized its deal to buy Dal­las-based MoneyGram in April, af­ter it sweet­ened its bid by over one-third to beat a ri­val offer from US-based Euronet World­wide Inc.

MoneyGram, and CFIUS could not im­me­di­ately be reached for com­ment.

Ant Fi­nan­cial’s plans were ear­lier re­ported by Bloomberg.

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