Getting approval to buy MoneyGram might be tough – Jeffrey Towson

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Jeffrey Towson

The surprise announcement Alibaba‘s Ant Financial is trying to buy MoneyGram International is not a done deal, warns Beida business professor Jeffrey Towson. Chinese companies buying American ones are under scrutiny and in the financial industry it would be a first one, he tells the VOA.

VOA:

The Ant Financial mascot is–an ant. The company hopes to expand in the U.S.

If Ant Financial’s offer is accepted, the deal must still gain the approval of the Committee for Foreign Investment in the United States, known as CFIUS. Some experts believe this would be the first test for a Chinese financial company seeking to do business in the U.S.

Jeffrey Towson is a professor of investments at Peking University’s Guanghua School of Management.

He told VOA that “getting approval from CFIUS might be more difficult this year. Plus, Chinese acquisitions are more on the media radar than before. And finally, there is also a competing bidder, Euronet, and they will probably push for a regulatory denial based on security concerns.”

More at the Voice of America.

Jeffrey Towson is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more experts at China’s outbound investments at the China Speakers Bureau? Do check out this list.