MoneyGram and Ant Financial call off merger plans

Money transfer company MoneyGram and Ant Financial have agreed to terminate their Amended Merger Agreement, following their inability to obtain the required approval for the transaction from the Committee on Foreign Investment in the United States (CFIUS).

However, in a statement issued yesterday (2 January), MoneyGram and Ant Financial said that they do still plan to “work together on new strategic initiatives in the remittance and digital payments markets”.

Alex Holmes, Chief Executive Officer of MoneyGram, commented: “The geopolitical environment has changed considerably since we first announced the proposed transaction with Ant Financial nearly a year ago. Despite our best efforts to work cooperatively with the U.S. government, it has now become clear that CFIUS will not approve this merger. We are disappointed in the termination of this compelling transaction, which would have created significant value for our stakeholders.”

Ant Financial is linked to China’s online retailer giant Alibaba.