Anbang Insurance’s North American takeover ends up in failure

Terminated acquisition bid is the latest in the string of failed purchases in the US for the insurance group

Anbang Insurance’s North American takeover ends up in failure

Insurance News

By Gabriel Olano

US-based insurer Fidelity & Guaranty Life has terminated its agreement for a US$1.6 billion acquisition by Anbang Insurance Group Co. of China, saying it will look into other options.

Fidelity & Guaranty said in a statement on Monday that it “is continuing to evaluate strategic alternatives to maximize shareholder value and has received interest from a number of parties.”

“FGL has no remaining obligations under the merger agreement and may enter into an alternative transaction,” it added.

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In 2015, FGL agreed to be acquired by Anbang at a price of US$26.80 a share. However, the deal ran into regulatory obstacles and the valuations of insurers in the US rose, giving FGL a reason to look for a new buyer.

This isn’t the first failed deal in the US for Anbang, which started out in China in 2004 as an auto insurer. Last year, a consortium led by Anbang cancelled its bid to buy Starwood Hotels and Resorts Worldwide Inc. for US$14 billion, citing “various market considerations.” In October, its planned purchase of a hotel in southern California was called off after US national security concerns were raised due to the property being near a naval base.

Just last month, the insurance group called off talks with Kushner Companies to redevelop a 41-storey office tower in Manhattan. Kushner Companies is owned by the family of Jared Kushner, a son-in-law and senior adviser of US President Donald Trump.

Related stories:
Anbang denies reports of investing in Manhattan office tower
Trump’s son-in-law’s firm could net US$400 million from deal with Anbang

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