MoneyGram deal falls apart

A US GOVERNMENT panel rejected Ant Financial’s acquisition of US money transfer company MoneyGram International over national security concerns, the companies said on Tuesday, the most high-profile Chinese deal to be torpedoed under the administration of US President Donald Trump. The $1.2 billion (R14.85bn) deal’s collapse represents a blow for Jack Ma, the executive chairperson of Chinese conglomerate Alibaba Group Holding, who owns Ant Financial together with his executives. He was looking to expand Ant Financial’s footprint amid fierce domestic competition from Chinese rival Tencent Holdings’ WeChat payment platform. Ma, a Chinese citizen who appears frequently with leaders from the highest echelons of the Communist Party, had promised Trump in a meeting a year ago that he would create 1 million US jobs. MoneyGram shares were down at $12.06 in after-market trading. The companies decided to terminate their deal.