The subsidiary responsible for digital payments from Alibaba – Ant Financial will purchase MoneyGram.
MoneyGram is an American company of money transfer and it will be acquired by the retail giant for $880 dollars, writes BBC.
The massive purchase reported by Alibaba will require a series of approbations from the Foreign Investments Committee in the US.
The financial authority has the main purpose to analyze every major foreign acquisition by invoking national security.
MoneyGram has 350.000 branches in 200 countries, while Ant Financial has 630 million users.
Ant Financial has a significant share in the Chinese market of online payments and the purchase might help the company to extend its influence.
The MoneyGram shares rose by 9% shortly after the announcement.
The purchase was also approved by Money Gram’s leading board.
The initiative of the Chinese giant on the American market follows the tensions between China and the United States – world’s biggest economic power.
If the agreement receives the green light, this will become Alibaba’s second acquisition in the United States.
Last year, the Alibaba purchased EyeVerify for $70 million dollars.
EyeVerify is a start-up based in Missouri.
The Missouri-based company uses biometrical technology to verify and ensure transactions and other data.
Ant Financial operates Alipay and reported an incredible growth in the last two years, especially in the Chinese middle-class.
Ant has major experience on the technological side and MoneyGram has this impressive network of agencies.
MoneyGram has its headquarters in Dallas and it was founded in 1940.