US blocks sale of Moneygram to ant financial of China
A source has recently disclosed that the United States of America has blocked $1.2bn sale of money transfer company Moneygram to ant financial of China which is known as the digital payments arm of Alibaba.
It is one of the highest profile Chinese deals which are to be rejected by Washington since the American president Donald Trump came to power.
The organizations said that regulators overseeing foreign investments in the United States of America had denied to support the takeover.
Since the merger was declared last year, the geographical environment had changed considerably they further added.
The collapse is a biggest boost to the ambitions of billionaire executive chairman of Alibaba, Jack Ma, who had promised American president Donald Trump that he would generate a million United States jobs.
America blocks Moneygram sale to China’s Ant Financial
Alibaba owns ant financial together with the executives of Alibaba and meanwhile they observed the American market as a major way to enlarge globally in the part of fierce domestic competition from the Tencent’s WeChat likes.
On Tuesday, a joint statement revealed that Ant Financial and Moneygram claimed that the duo had abandoned the deal after losing to create the required approval for the transaction on foreign investment in the United States of America from the committee, despite huge efforts to address the concerns of committee.
Reports advise the committee had stated security concerns over the takeover. The chief executive Moneygram, Alex Holmes told that he was disappointed by the result & even reported the geopolitical environment has changed in the previous year since the deal was announced. America has been toughening its role on business dealings with China.
The US launched formal review of intellectual property practices of China in October 2017. American politicians & military officers have also advised the administration to take a close look at the China’s investments in the country, especially in the technology industry.