The MoneyGram Sale with Ant Financial of China was stopped by the US government due to certain issues regarding the national security. On Tuesday, the US government panel decided to reject the proposal for Ant Financial to take over MoneyGram, which is a company for money transfer in the US.
This deal to acquire MoneyGram International Inc., was one of the largest deals struck by US, especially with China in the Trump Era and thus became the biggest one to collapse under the current US administration due to reasons of national security and was one of the most prestigious deals to be rejected by the Trump presidency.
The deal for the Chinese company of Ant Financial to take over US based MoneyGram International Inc., was almost of $1.2 billion and the rejection of the deal on Tuesday is bound to cause quite some trouble for Jack Ma. Jack Ma is the executive chairman of China’s Alibaba Group Holding Ltd (BABA.N) which is essentially the largest conglomerate in the internet world from China and Ant Financial is owned by Ma who shares this ownership with other executives of Alibaba. One year back, Jack Ma at a meeting with President Trump had promised to provide jobs for 1 million US citizens but this failure of the MoneyGram deal to go through presents potential problems. Jack Ma is usually seen with influential men and leaders of the Communist Party and is engaged in an intense competition with the other Chinese giant Tencent Holdings Ltd who hole the platform for payment of WeChat. Acquiring MoneyGram International Inc., would probably give Jack Ma enough leverage to take on potential rivals of Alibaba but the rejection of the deal has put a stop to all that.
Details have obviously not been released yet as to what problems had risen that led to the panel of the US Government looking through the proceedings to stop the sale of MoneyGram to Ant Financial but it was of concern to the national security and posted threat to the country in some way or other.