Acquisition of MoneyGram

Money gram merger with ant financial

Question: Acquisition of MoneyGram International Inc., United States based money transfer company was announced by which of the following company-
(a) Numero Uno Finance
(b) Ant Financial
(c) Toshiba Financial
(d) Rent Financial
Ans: (b)
Related facts:

  • On 26 January 2017; Alibaba affiliate Ant Financial announced the acquisition of U.S. money-transfer firm MoneyGram.
  • Ant Financial acquired MoneyGram for USD 880 million.
  • Stockholders of MoneyGram being offered $13.25 per share in cash.
  • The transaction will connect MoneyGram’s money transfer network of 2.4 billion bank and mobile accounts and 350,000 physical locations with Ant Financial’s users.
  • The combination will provide consumers in over 200 countries and territories with convenient and accessible financial services, which furthers Ant Financial’s mission to promote equal access to financial services globally.
  • The services of MoneyGram and Ant Financial are highly complementary.
  • MoneyGram, which will remain headquartered in Dallas and continue to operate under its existing brand.
  • It will be able to leverage Ant Financial’s global presence and existing network to serve more than 630 million users — including 450 million with Alipay and 180 million with India’s leading mobile payment provider Paytm — to increase MoneyGram’s transaction volume across the broad Asia-Pacific region.
  • The transaction will also help expand Ant Financial’s business in new global markets following its recent partnerships with Paytm in India and Ascend Money in Thailand.
  • The acquisition is expected to close in the second half of 2017.
  • Alipay.com is a third-party online payment platform. It was launched in China in 2004 by Alibaba Group and its founder Jack Ma.

Reference:
http://ir.moneygram.com/releasedetail.cfm?releaseid=1009287