BEIJING: China’s Ant Financial has sweetened its bid for MoneyGram International Inc. by over a third, beating a rival offer to gain approval from the US electronic payment firm’s board, although it still faces regulatory hurdles.
Ant’s plans to expand globally with the acquisition of one of the biggest firms in remittances hit a major snag last month when US-based Euronet Worldwide Inc. made an unsolicited offer and openly lobbied US lawmakers, saying Ant’s proposal created a national security risk.
The finance affiliate of e-commerce giant Alibaba Group Holding Ltd. hiked its bid 36 percent to $18 per share in cash, valuing MoneyGram at around $1.2 billion.
The new offer handily beats the $15.20 per share proposed by Euronet and represents a 9 percent premium to MoneyGram’s last traded share price on Thursday. Euronet declined to comment on Ant’s fresh bid. MoneyGram’s global remittance channels for sending money overseas would help Ant build a cross-border network after a string of recent investments in Asia. But the deal must first clear the Committee on Foreign Investment (CFIUS), which looks at acquisitions for national security risks.
CFIUS has been a stumbling block for several Chinese deals in the US and a deal with Euronet is likely to be more agreeable to US policymakers amid rising tensions between Washington and Beijing over trade and foreign policy.
Analysts said, however, that while CFIUS could certainly hold up any agreement, it was not necessarily a deal-breaker given MoneyGram is likely to push for the deal given the sweetened offer.
“CFIUS may lengthen the process...I do not think CFIUS would be a deal killer,” said Jeffrey Sun, a Shanghai-based partner with law firm Orrick, Herrington & Sutcliffe.
Euronet has said Chinese ownership could compromise the relationship between law enforcement and MoneyGram when investigating money laundering and “terrorist financing.”
Ant has sought to allay those fears, reiterating on Monday that any data collected on MoneyGram users in the US will continue to reside on US-based servers and that MoneyGram will operate as an independent unit.
Ant and MoneyGram said in a joint statement they have made progress toward obtaining regulatory approvals, including winning US antitrust clearance and are confident the deal will close this year.
The news comes one day after sources said China’s Anbang Insurance Group would let a plan to acquire US annuities and life insurer Fidelity & Guaranty Life for $1.6 billion lapse, after failing to secure necessary regulatory approvals.
While Anbang’s acquisition had received clearance from CFIUS it could not get past some US state regulators.
Other analysts noted that Ant was likely to already have Chinese regulators on-side given the high-profile nature of the deal.
“I assume there are reassurances being given,” said Zhi Ying Ng, a Singapore-based senior analyst at Forrester.
Dallas-based MoneyGram provides services in 350,000 locations across 200 countries and would be Ant’s first major acquisition in the West.
A deal would follow recent Ant investments in payment firms in India, Thailand, South Korea and the Philippines. Last Wednesday, Ant and Indonesia’s Elang Mahkota Teknologi (Emtek) agreed to launch a joint venture to roll out mobile payments in Indonesia.
Ant, which is planning an initial public offering (IPO), was valued at around $60 billion in mid-2016, according to a source familiar with the matter.
It has since had another financing round, which raised $3 billion, a separate source said, although latest valuations were not immediately available.
Ant hikes MoneyGram bid by more than a third
Ant hikes MoneyGram bid by more than a third
Six vital sectors drawing US investors to Saudi Arabia
RIYADH: Six vital sectors are drawing US investors, including entrepreneurs and small businesses, to Saudi markets as the Kingdom continues to develop its regulatory framework and foster innovation, Deborah Lehr, interim CEO of the Meridian International Center, said in an interview with Al-Eqtisadiah.
Lehr, who is heading a trade and investment delegation to Saudi Arabia in her capacity as an economic advisor affiliated with the White House, stated that the six sectors include hospitality, luxury goods, and tourism, as well as culture, technology, and others.
She noted that Saudi Arabia has significantly eased the process for foreign companies to establish a presence, a critical factor for small and medium-sized enterprises that may not yet have the scale to expand, making the Kingdom an attractive market for both large and innovative small companies.
Following the success of the Saudi Crown Prince’s recent visit to Washington, she said, Meridian organized a US trade delegation to explore tangible and growing opportunities for US businesses in Saudi Arabia.
Translating Vision 2030 priorities into real partnerships
The delegation, which included representatives from Delta, Intel, Pernod Ricard, and Basilinna, among others, met a wide range of government officials, private-sector leaders, and entrepreneurs to explore how US companies can participate in Saudi market growth.
According to Lehr, discussions were practical and forward-looking, focusing on translating Vision 2030 priorities into real business partnerships.
She highlighted that most of the companies in the delegation were large enterprises operating across various sectors, underscoring the diversity of businesses active in Saudi Arabia.
She pointed out that these companies joined the mission because they see the potential to scale their operations in Saudi Arabia — whether by increasing flight routes, enhancing airport security, offering advisory services to firms entering the Saudi or US markets, or exploring opportunities in the beverage sector.
Relationship increasingly taking economic dimension
Lehr hinted to the Saudi minister of investment that the US-Saudi relationship is also increasingly taking on an economic dimension.
She noted that bilateral trade stands at around $40 billion, compared with Saudi-China trade of approximately $110 billion, highlighting untapped growth potential between the two countries, especially as diplomatic and political ties continue to strengthen.
She said the reforms present valuable opportunities for US companies across multiple sectors, including advanced manufacturing, technology and logistics, as well as aviation, tourism and culture, alongside a wide range of services.
With the regulatory environment being modernized and business stability increasing, the scope of US investment is set to expand further. More importantly, she added, the greater the engagement of companies, the stronger and more resilient the bilateral relationship will become in the years ahead.
She emphasized that Saudi Arabia has undergone deep social and economic transformations, including increased female participation in the workforce and entrepreneurship, while emerging as a cultural hub with a thriving arts scene and new platforms for creative expression.
Lehr further said that the world will witness growing global interest from companies and institutions eager to be part of Saudi Arabia’s remarkable transformation, amid increasing openness and a willingness to share its history, culture, and ambitions with the world.
Saudi agenda offers tangible opportunities
Lehr highlighted that during her visit, she focused on three key economic priorities. The first is Saudi Arabia’s strategic shift of capital from the oil and gas sector toward technology and innovation, a move that signifies not only economic diversification but also the Kingdom’s emergence as a globally competitive player.
Second, the Kingdom’s reform agenda has provided tangible opportunities for foreign companies, reflecting real changes that facilitate international participation in Saudi growth.
The third point she focused on was that the strong geopolitical and economic ties between the US and Saudi Arabia have bolstered investor confidence. As the Kingdom strengthens its global role and deepens relationships with partners such as the US, its attractiveness for long-term foreign direct investment continues to grow.
She noted that sectors such as artificial intelligence, gaming and entertainment, advanced manufacturing, and the technology ecosystem are areas in which the US has strong competitive advantages, at a time when US firms are seeking new markets that offer stability and long-term potential.
Giga-projects in Saudi Arabia, including AlUla and NEOM, have attracted global attention and highlighted emerging opportunities across the country.
These projects demonstrate the Kingdom’s ambitious vision and its creation of entirely new sectors rather than merely expanding existing ones.
