Mike Mozart via flickr
Last month, Euronet Worldwide Inc. made a proposal of $ 15.2 per share. Having raised the offer, Ant Financial made it clear that it intends to complete the transaction. However, the Chinese company may face political obstacles, since the Committee on Foreign Investment in the United States calls for a thorough review of the transaction. Euronet believes that it has a better chance of approving the deal.
MoneyGram’s shares are traded at $ 16.51 on Monday.
It is expected that the deal with Ant Financial will be closed in the second half of 2017.
Now MoneyGram has 350 thousand branches around the world and 2.4 billion customer accounts. Ant Financial takes up half of the Chinese online payment market. It serves about 450 million customers in China, providing various services such as wealth management, insurance and consumer loans. In September last year, its value was estimated at 75 billion dollars. Now the company wants to start promotion to foreign markets, as fight with its domestic competitor, payment service of instant messenger Wechat, becomes more and more aggravated. Earlier the company entered into partnership agreements with Paytm in India and Ascend Money in Thailand.
The deal has been announced at a time when intention of US President Donald Trump to limit migration threatened MoneyGram’s business in the country. Many migrants from Mexico, working in the US, use the service to send money to their families. According to Bloomberg Intelligence, Mexico accounts for about 10% of the service’s transactions.
The founder and chairman of the board of directors of Alibaba Group, Jack Ma, in January held a working meeting with US President Donald Trump, reminds TechCrunch. Then the Chinese billionaire promised to create new jobs in the US, saying it would be in tune with Ant Financial’s position.
"We liked to cooperate with the MoneyGram team in the last few months, and we remain committed to investing in MoneyGram’s business", Douglas Feagin, president of Ant Financial International, said in a statement. He noted that the company intends to "grow the team" in the US and create more opportunities for MoneyGram in the future, as it pursues development of the digital field in global finance.
source: bloomberg.com
MoneyGram’s shares are traded at $ 16.51 on Monday.
It is expected that the deal with Ant Financial will be closed in the second half of 2017.
Now MoneyGram has 350 thousand branches around the world and 2.4 billion customer accounts. Ant Financial takes up half of the Chinese online payment market. It serves about 450 million customers in China, providing various services such as wealth management, insurance and consumer loans. In September last year, its value was estimated at 75 billion dollars. Now the company wants to start promotion to foreign markets, as fight with its domestic competitor, payment service of instant messenger Wechat, becomes more and more aggravated. Earlier the company entered into partnership agreements with Paytm in India and Ascend Money in Thailand.
The deal has been announced at a time when intention of US President Donald Trump to limit migration threatened MoneyGram’s business in the country. Many migrants from Mexico, working in the US, use the service to send money to their families. According to Bloomberg Intelligence, Mexico accounts for about 10% of the service’s transactions.
The founder and chairman of the board of directors of Alibaba Group, Jack Ma, in January held a working meeting with US President Donald Trump, reminds TechCrunch. Then the Chinese billionaire promised to create new jobs in the US, saying it would be in tune with Ant Financial’s position.
"We liked to cooperate with the MoneyGram team in the last few months, and we remain committed to investing in MoneyGram’s business", Douglas Feagin, president of Ant Financial International, said in a statement. He noted that the company intends to "grow the team" in the US and create more opportunities for MoneyGram in the future, as it pursues development of the digital field in global finance.
source: bloomberg.com
