The proposed $880 million MoneyGram and Ant Financial merger has run into trouble in the United States, reports Bloomberg. The publication said that two members of US Congress - Kevin Yoder and Eddie Bernice Johnson - called on Committee on Foreign Investment in the US for an investigation into Ant Financial's proposal as it would allow Chinese access to the US financial infrastructure. They added that the proposed deal could also pose a significant threat to the US' national security. The Committee on Foreign Investment in the US (CFIUS) is an inter-department body which looks at acquisitions by foreign companies. This could be influenced by President Donald Trump’s “America First” policy (Jack Ma’s comments on an impending trade war between the US and China probably doesn’t help). Ant Finacial had entered into a definitive agreement in January with MoneyGram. The deal was expected to close by second of half 2017, after which the stockholders of MoneyGram will be offered $13.25 per share in cash. However, in March, Kansas-based electronic payments company Euronet came forward with an unsolicited proposal to acquire all outstanding shares of MoneyGram Common Stock and Preferred Stock for $15.20. Why it matters to India Note that Ant Financial’s merger with MoneyGram also talked about being able to tap the 450 million users registered users on Alipay (in China), and the 200 million users registered with Paytm (in India). In India, MoneyGram also is an authorized entity by the Reserve Bank of India which can accept cross-border inward remittances. Ant Financial initially purchased a…
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