Anbang Insurance takeover of Fidelity & Guaranty Life in US fails as deal is terminated
The Chinese based conglomerate suffers another setback in the US as it fails to get US$1.6 billion deal past state regulators
Fidelity & Guaranty Life terminated its US$1.6 billion agreement to be purchased by China’s Anbang Insurance Group Co. and said it will weigh other possible deals.
“The company’s board of directors is continuing to evaluate strategic alternatives to maximize shareholder value and has received interest from a number of parties,” the US insurer said Monday in a statement. “FGL has no remaining obligations under the merger agreement and may enter into an alternative transaction.”
Chinese insurance conglomerate Anbang, one of the country’s most active cross-border acquirers, was unable to get approval from the states of Iowa and New York, where FGL does business, within the time frame set out in an extended takeover agreement, Reuters reported on Monday, citing people familiar with the matter.
Beijing-based Anbang Insurance Group and FGL reached agreement for the takeover deal in November 2015. But Anbang withdrew an application to the New York regulator last May after the latter sought more detailed information about the Chinese company’s funding and shareholder structure.
FGL extended its merger agreement with Anbang to April 17 this year after it was set to expire on February 8.
Had Anbang secured a public hearing with Iowa’s financial regulator by April 17, it could have extended the expiration date to May 31.