Anbang’s acquisition of Fidelity & Guarantee life falls through

There is more to this deal than meets the eye, especially in the wake of developments that preceded this wherein last month Kushner Companies ended talks with Anbang to redevelop its New York office tower.

As per sources familiar with the matter at hand, China-based Anbang Insurance Group has stated it will meet U.S. annuities and life insurer Fidelity & Guaranty Life after its $1.6 billion agreement to acquire it lapsed, following the failure to secure all necessary regulatory approvals.

The development has cast a new shadow of doubt on Anbang’s commitment to U.S. deals, following the abandonment of its $14 billion deal to acquire Starwood Hotels & Resorts Worldwide Inc.

Marriott International Inc has ended up buying Starwood.

Although Anbang’s FGL had managed to acquire clearance from the Committee on Foreign Investment in the United States (CFIUS), it failed to get past state regulators.

Although FGL had extended its Nov 2015 merger agreement with Anbang, to April 17 after it was set to expire on Feb. 8, Anbang had yet to secure a public hearing with Iowa’s financial regulator by April 17. While Anbang could have extended the deal, it let it go. The agreement for a public hearing expires on May 31.

As per sources familiar with the matter at hand, Anbang has failed to meet the conditions for any further extension.

Anbang also needed to get an approval from New York’s financial regulators, however according to sources it abandoned its efforts to secure it midway.

Sources preferred the cover of anonymity since these recent developments are confidential.

Although they did not disclose as to why Anbang could not secure the approvals from state regulators having crossed the hurdle of CFIUS, they however disclosed that the Chinese group had pushed back against some of the required disclosures.

Significantly, in March 2017, the real estate firm headed by Trump’s son-in-law, Kushner Companies, had stated it had ended talks to redevelop its flagship New York office tower with Anbang.

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