Chinese giant Ant Financial Buys U.S. firm MoneyGram for $880 Million

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Chinese giant Ant Financial Buys U.S. firm MoneyGram for $880 Million

News broadcasted recently by CNN reveals that Ant Financial will buy MoneyGram for $880 Million. The later is a global money transfer company based in the United States but send money within the US and to other countries.

Ant Financial, a Chinese financial services giant is a subsidiary corporation under Alibaba Group Holding Limited, a global conglomerate founded by Chinese billionaire Jack Ma.

Immediately the purchase deal was announced last week on Thursday, MoneyGram stock increased by 10%.

The purchase deal is expected to be the first test on how serious the recently inaugurated US Trump is about halting or restricting money transfers to Mexico.

Trump has already signed a series of executive orders authorizing the construction of a multi-billion physical wall on the US-Mexico border. Trump had said during his presidential campaign that he would consider halting or levying huge amounts of taxes should Mexico decline to pay for the wall.

Last week, Mexican President Enrique Pena Nieto canceled a previously scheduled meeting with Donald Trump after the news broke that the US will force Mexico to cater for the full expenses of building the wall.

MoneyGram has always enjoyed an ever-growing remittances business. For instance, few weeks before the November election, the company announced a deal with Walmart that would allow customers send their money from Walmart stores in the U.S to Walmart locations in Mexico.

Now the question many people are asking is whether the President will approve MoneyGram selling out to a Chinese company.

Contrary to what most people think, the deal is expected to sail through without any obstacles. It is worth noting that the President already had a meeting with Chinese billionaire Jack Ma in New York earlier this month before the inauguration.

After the meeting, Trump praised the billionaire saying that he is a great entrepreneur who he is planning to do great things with.

He said, “Ma is a great entrepreneur and one of the best in the world. We are going to do some great things together."

Could the Ant Financial deal to purchase a US company be the start of those great things?

Those who have been following the recent happenings in the United States agree that it would be one of those great things Trump was referring to. However, the White House has not released an official report to show support for the proposed acquisition.

But executives from the purchasing company have already released a press release to stress that their deal is good for consumers and the employees of MoneyGram. They have also released some details about the deal.

They have revealed that the money transfer company will keep its headquarters in Dallas. Another detail from their press release is that MoneyGram should hire, maintain and grow its U.S.-based workforce.

"We are always committed to continuing to invest in MoneyGram's US workforce and growing jobs in the United States," Ant Financial CEO Eric Jing said.

Another interesting thing is that Jing didn't hide the fact that MoneyGram is a major player in remittances from the United States to Mexico. He said that the two companies will boost access, simplicity, and security for people across the world to send and receive funds especially in China, India, United States, Mexico and the Philippines.

Company Details

Ant Financial Buys MoneyGram

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