After a year-long standoff, the acquisition of US-based financial services company Western Union by Ant Group (formerly known as Alipay) has ultimately fallen through. Ant Group cited the persistent failure to secure approval from the US Committee on Foreign Investment in the United States (CFIUS) due to national security concerns.
Despite the deal's termination, both parties intend to continue their collaboration, focusing on new strategic partnerships in the remittance and digital payment sectors. They aim to leverage their combined strengths to provide swift and cost-effective money transfer services to global customers.
Ant Group initially proposed to acquire Western Union in January 2017 for $8.8 billion, which later escalated to $12 billion with an increased offer. However, CFIUS, a foreign investment agency under the US Treasury, consistently withheld approval.
Speeding up its global ambitions, Western Union, founded in 1988, was a key component of Ant Group's international strategy. The company had previously made acquisitions in the Philippines (GCash), South Korea (Kakao Pay), and was preparing to launch electronic wallets in Indonesia and Malaysia.
Chinese Foreign Ministry Spokesperson Geng Shuang addressed the issue during a press briefing, expressing the hope that the US would provide a fair and predictable environment for Chinese enterprises, specifically in relation to the Ant Group's acquisition attempt.
News agency Xinhua echoed these sentiments, warning that 2018 could be a challenging year for Sino-US trade relations. If the US persists with protectionist measures, China might respond with countermeasures. Any escalation of distrust and tensions would impose significant costs on both nations. To maintain a stable trade relationship, a measured and practical approach is necessary, they stated.