The US government bans Alibaba from buying banking companies

MoneyGram logo
United States protection against the action of China's technological companies are busy trying to buy companies in the country again occurred. The action is now afflicted Alibaba Group company. Yesterday, Ant Financial company under Alibaba Group failed to buy MoneyGram money transfer service for US $ 1.2 billion due to US government ban.

"Geopolitical conditions have recently changed dramatically since we announced Ant Finance's offer a year ago, although we have been cooperating with the government, but the US Foreign Investment Committee has not agreed to this agreement," MoneyGram CEO Alexander Holmes said.

Known Ant Financial almost acquired MoneyGram after the company's bid successfully competed with Euronet in January last year. Initially, Ant Financial wanted to acquire MoneyGram to expand its payment system to the United States.

Head of International Operations Ant Financial Doug Feagin did not say much about it. Although the acquisition process failed, Ant Financial said it would continue to work with MoneyGram to support Ant Foin's fintech ecosystem.

As a result of the failure of the acquisition process, Ant Financial has to pay US $ 30 million as a sanction for the cancellation process of the acquisition. MoneyGram's own stocks fell steadily as the news of the Ant Financial acquisition process failed.

The United States action this time made the failure of the second acquisition with the greatest value made by Chinese companies in the United States. In September, a Chinese company also nearly acquired Lattice Semiconductor for US $ 1.3 billion.

The recent geopolitical conditions of the United States are indeed very influential on the field of technology. The United States is concerned that the acquisition of the technology company threatens the cyber security of the country.

Read Also: