Ant Financial, a subsidiary of the e-commerce giant Alibaba, pays $1.2 billion to acquire the world’s leading money transfer service MoneyGram.
Art Financial, which manages Alibaba’s financial affairs, is very close to making a major acquisition. The founder of the company, Jack Ma, stated that they want Art Financial to expand internationally, which accounts for over 70 percent of online payments in China.
Euronet is also interested in acquiring the MoneyGram and the rivalry between two potential buyers heats up the bidding war. Today, Ant Financial raised its $13.25 bid to $18 per share in January and became the highest bidder with a 1.2 billion dollars offer. According to Ant Financial and Moneygram’s plans, the purchase will be completed in the second half of 2017, Ant Financial will continue its activity as an affiliate company.
Danger of Being Monopoly
For now, the biggest obstacle to this acquisition is that it is not certain that the US Federal Trade Commission will approve this deal or not. MoneyGram, which serves around 347,000 locations in more than two hundred countries, is believed to be in danger of merging with Ant Financial, which currently dominates the Chinese market, but the other companies that offer money transfer services are going to be harmed, but Jack Ma has a plan to overcome these problems.
US President Donald Trump stressed that in the early days when he took over his seat, companies should start work on US employment, Jack Ma told Trump in person that Alibaba would offer some job opportunities for small businesses in the United States. It is predicted that Jack Ma’s hiring US citizens offer might help them to overcome the FTC obstacle.