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The
development casts new doubt on Anbang's commitment to U.S.
deals, following its abandoned attempt last year to acquire
Starwood Hotels & Resorts Worldwide Inc for $14 billion.
Marriott International Inc <MAR.O> ended up buying Starwood.
While Anbang's FGL acquisition had received clearance from the
Committee on Foreign Investment in the United States (CFIUS), a
U.S. government panel that scrutinizes deals for potential
national security concerns, it could not get past some U.S.
state regulators.
FGL had extended its merger agreement with Anbang, which was
signed in November 2015, to April 17 after it was set to expire
on Feb. 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.
However, Anbang has failed to meet the conditions for any
further extension, the sources said. Anbang also needed approval
from New York financial regulators, but it has abandoned efforts
to secure it, the sources added.
The sources asked not to be identified because the recent
developments are confidential.
The sources did not say why Anbang could not secure approvals
from U.S. state regulators after clearing CFIUS, but noted that
the Beijing-based group had pushed back against making some of
the disclosures required.
FGL said in February it would solicit other acquisition offers
as part of its merger agreement extension with Anbang.
Negotiations between FGL and other suitors, including
Bermuda-based reinsurance company Athene Holding Ltd <ATH.N>,
are continuing, the sources said.
FGL declined to comment, while Anbang and Athene did not
immediately respond to requests for comment.
Established in 2004, Anbang burst onto the global scene from
near obscurity by signing more than $30 billion worth of
corporate deals in the last 2-1/2 years. Its high-profile
investments included a $1.95 billion purchase of the Waldorf
Astoria Hotel in New York.
Little is known about Anbang's funding and shareholding
structure, partly because it is a private company. Corporate
records in China show Anbang is owned by 39 privately held and
little-known companies scattered across China.
Last month, Kushner Companies, the real estate firm headed by
U.S. President Donald Trump's son-in-law until recently, said it
ended talks to redevelop its flagship New York office tower with
Anbang.
(Reporting by Koh Gui Qing and Greg Roumeliotis in New York;
Additional reporting by Karen Freifeld and Suzanne Barlyn in New
York; Editing by Richard Chang)
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