A proposed $1.2 billion deal between MoneyGram International Inc. and Ant Financial Services Group, the mobile transfers affiliate of China’s Alibaba Group Holding Inc., has been terminated. The companies failed to obtain approval from the Committee on Foreign Investment in the United States despite "extensive efforts," Texas-based MoneyGram said in a statement.
The two companies announced they will “work together on new strategic initiatives in the remittance and digital payments markets that will help each company achieve its objective of enabling consumers around the world to enjoy better money transfer services.”
The deal under which Ant would acquire all of the outstanding shares of MoneyGram for $18 per share in cash was announced in April 2017. It caused a stir in the US as several lawmakers said the acquisition of a US group by an affiliate of Chinese company would pose a national security threat. Under the agreement, Ant will also pay a $30 million termination fee. Following the announcement, MoneyGram shares dived nearly 10% in after-hours trading.
