Report: Alibaba again asks U.S. to approve MoneyGram purchase
Ant Financial, the finance affiliate of China's Alibaba Group, has refiled for U.S. regulatory approval to acquire Dallas-based money transfer company MoneyGram International for $1.2 billion, according to Reuters. This comes after Ant Financial was unable to obtain clearance from The Committee on Foreign Investment in the U.S. during an initial 75-day waiting period.
- Why it matters: This deal represents a key test for how the Trump-era CFIUS views Chinese acquisitions of U.S. companies that could have national security implications. And that's before the states get to weigh in, given that Ant Financial still needs around two dozen more states to grant it money transmitter licenses.
- Bottom line: "A CFIUS refile does not necessarily mean that a deal will be rejected, although it does indicate increased government scrutiny. More deals have had to be refiled with CFIUS following the inauguration of U.S. President Donald Trump in January, as several key positions at several government departments remain vacant or have taken too long to be filled." – Greg Roumeliotis, Reuters