IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

Yes

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 02 Jan 2018 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On January 2, 2018 the financial services firm Ant Financial announced that its plan to acquire U.S. money transfer company MoneyGram International Inc. for $1.2 billion had ended after a U.S. government panel rejected the transaction over national security concerns. Ant Financial is owned by Alibaba Group Holding Ltd., a Chinese investment firm. The companies reportedly decided to terminate their deal after the Committee on Foreign Investment in the United States (CFIUS) raised objections. Press reports indicate that the CFIUS had considered, but rejected, proposals by which the companies promised to mitigate concerns over the safety of data that can be used to identify U.S. citizens.

The CFIUS has made no documentation public regarding its determinations in this case. The only publicly available information is from press accounts and the companies themselves.

“Despite our best efforts to work cooperatively with the U.S. government, it has now become clear that CFIUS will not approve this merger,” MoneyGram Chief Executive Alex Holmes said in a statement.

 

 

AFFECTED COUNTRIES

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