U.S. digital funds company Euronet global just provided $ 1 billion to buy national rival MoneyGram, potentially sparking a bidding war with chinese language competitor Ant financial.
MoneyGram said it “will moderately overview and believe” Euronet’s unsolicited supply. The Dallas-based totally company is among the hottest avenues for sending money from the U.S. to Mexico and different countries.
MoneyGram stock jumped nearly 25% following the brand new bid.
related: chinese massive buys U.S. firm that does Mexico money transfers
Ant monetary, an affiliate of chinese language e-commerce giant Alibaba (, introduced closing month it will accumulate MoneyGram for approximately $ 880 million. , Tech30)
however this is not only about the money. Euronet — based totally in Leawood, Kansas — is arguing a domestic takeover of MoneyGram would face fewer regulatory hurdles than a bid from a chinese company.
“The idea offers stockholders a clear and considerably extra certain route to a sooner closing,” the corporate stated in a remark.
Given the rising tensions between China and the U.S. over exchange and foreign coverage, a bid from a chinese monetary services massive was all the time going to face scrutiny. Ant financial buyers embrace Alibaba’s billionaire chairman Jack Ma, as well as companies and dollars backed through the chinese govt.
Republican congressmen Robert Pittenger and Chris Smith brazenly criticized MoneyGram’s care for Ant monetary closing month, elevating alarms in regards to the chinese language executive’s “vital” 15% stake in Ant.
“because the chinese language executive an increasing number of cracks down on political, non secular and human rights activists, we must absolutely have a look at how the MoneyGram network could also be used by the chinese language government to target these voices,” the lawmakers wrote in a Wall street Journal article.
related: Step again the usa. TPP international locations leaning into China now
Ant monetary said it continues to be committed to the deal.
“MoneyGram and Ant monetary proceed to work cooperatively under the terms of our merger settlement, and collectively, we are making growth on schedule against obtaining all required regulatory and shareholder approvals,” the company said in a remark.
MoneyGram mentioned it “continues to be topic to the terms of the definitive merger settlement with Ant financial and MoneyGram’s board has no longer changed its suggestion in support of the merger settlement with Ant monetary.”
Ant monetary lately achieved a funding spherical that valued the company at $ 60 billion, more than rival PayPal (. The MoneyGram takeover used to be the corporate’s first major transfer to enlarge its presence in a foreign country. , Tech30)
CNNMoney (Hong Kong) First printed March 15, 2017: 2:30 AM ET
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