Anbang suffers second setback in overseas push as offer for US insurer put on hold; follows Starwood withdrawal
Politically well connected company asked by New York regulator to provide further details on shareholding and funding structure
Anbang Insurance Group, one of China’s most aggressive overseas acquirers and controlled by enigmatic businessman Wu Xiaohui, has suffered another setback in its offshore expansion plans after halting a bid to buy a US based insurer.
The group plans to put on hold its purchase of annuities and life insurer Fidelity & Guaranty Life after the New York finance regulator sought more detailed information about the Chinese company’s funding and shareholder structure, foreign media reported.
Anbang would refile an application with the regulator in the near future, Fidelity & Guaranty Life said in a filing to the New York Stock Exchange on Tuesday. Anbang was not available for immediate comment.
Earlier reports said Anbang had agreed to buy the insurer for US$1.57 billion in November.
It is the second time in recent months that Anbang has suffered a setback in terms of acquiring overseas assets, after it dropped a plan to take over hotel giant Starwood in late March.
“If Anbang fails again this time, the company is very likely to face bigger pressure in fund raising in future as investors will question its execution ability in carrying out acquisition deals,” said a Hong Kong-based insurance analyst, who declined to be named.
The company is very likely to face bigger pressure in fund raising in future as investors will question its execution ability