BEIJING (AP) — Money transfer company MoneyGram says its proposed acquisition by Chinese billionaire Jack Ma’s Ant Financial Services Group has been called off after a U.S. government security panel rejected the $1.2 billion deal.
MoneyGram International Inc. CEO Alex Holmes said the companies failed to gain approval from the Committee on Foreign Investment in the United States despite efforts to respond to its concerns. The panel reviews proposed foreign acquisitions of U.S. companies on national security grounds.
Ant Financial, which is linked to Chinese e-commerce giant Alibaba, agreed to buy the company last January.
Holmes said in a statement Tuesday, “it has now become clear that CFIUS will not approve this merger.”