After encountering great resistance in his bid to buy MoneyGram, Alibaba Chief Executive Officer Jack Ma is facing scrutiny from several other foreign companies and U.S. politicians over the takeover. According to reports, Ma wants to buy the MoneyGram International Inc., but it remains to be seen if U.S regulators will even allow the takeover.
Alibaba trying to buy MoneyGram but some regulators are against the takeover
The takeover bid of venerable money-transfer service “MoneyGram” is drawing the ire of many U.S. politicians and other foreign companies. MoneyGram International Inc.is a money-transfer service that is often used to send money outside the country. Jack Ma-controlled Ant Financial is trying to buy the money-transfer service but there are some regulators who are unhappy and concerned about the results of a Chinese company owning this property.
According to reports by Bloomberg, Congresswoman Eddie Bernice Johnson and Congressman Kevin Yoder wrote in a letter to Treasury Secretary Steven Mnuchin that “the proposal merits careful evaluation as it would provide Chinese access to the U.S. financial infrastructure, a move that would pose significant national security risks if completed.”
Also, Jack Ma is not the only one who wants to buy the money transfer service; there are other foreign companies as well. Ant Financial, a financial-services affiliate of Alibaba Group Holding Ltd that is controlled by Jack Ma, made its bid earlier this year in January for $13.25 a share or $880 million. Leawood, a Kansas-based competitor Euronet Worldwide Inc., made its bid at $15.20 a share in March. The latter company says it has a better chance in getting regulatory approval than Alibaba.
In late March, to further consider the unsolicited proposal, the Dallas-based MoneyGram entered a confidentiality agreement with Euronet. On Friday, the e-commerce giant closed its shares at $107.83, down $1.02. The online retailing giant has year-to-date gained around 22.80%, in comparison to the 5.46% rise in the benchmark S&P 500 index during the same period, notes stock news.
Alibaba will last for 102 years: Jack Ma
In January, when Jack Ma – the Chairman of Alibaba – met the US President Donald Trump at Trump Tower in New York, he promised to create 1 million jobs in the United States. Recently, Ma made another speech at Hupan College in Hangzhou (in China). Hupan College is a private school that Ma co-founded with seven entrepreneurs.
The founder of Alibaba Corp. said, “Alibaba’s vision is to last for 102 years.” The company was founded in 1999 so as per math, the company is planning to last for the entire 21st century and survive till the year 2101. Ma further told that he is creating a business not just to sell but to last.