China's Ant Financial buys US payments firm MoneyGram

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Ant Financial Services Group, a Chinese firm controlled by Alibaba founder Jack Ma, agreed to buy US-based payments operator MoneyGram for about 880 million US dollars, the companies have said in a statement posted on Ant Financial’s official website.

Ant is behind Alipay, a platform that accounts for 80 percent of electronic payments in China where it is used for e-commerce at Alibaba online venues and a large number of mobile applications.

Signage for Ant Financial Services Group's Alipay app is displayed on a scanner inside a Sa Sa International Holdings Ltd. store in Hong Kong, China, November 1, 2016. /CFP Photo

China Business Journal reported on Thursday that, according to Ant Financial Services Group, the acquisition still needs approvals from MoneyGram’s stakeholders and relevant supervision organizations. It added that the deal will be completed during the second half of 2017.

Ant is also involved in investment services and online banking. MoneyGram specializes in wiring funds and boasts a network of 2.4 billion bank and mobile accounts along with 350,000 physical locations. Its rivals include Western Union.

Eric Jing, Chief Executive Officer of Ant Financial during a news conference in Hong Kong, China, on November 1, 2016. /CFP Photo

Ant and MoneyGram billed their businesses as "highly complementary," and the union was said to let them reach customers in more than 200 countries and regions.

"The acquisition of MoneyGram is a significant milestone in our mission to bring inclusive financial services to users around the world," Ant Financial Chief Executive Officer Eric Jing said in the same joint release.

A pedestrian passes Western Union and MoneyGram money transfer stores in Athens, Greece, on June 21, 2012. /CFP Photo

The headquarters of MoneyGram will remain in Dallas, Texas, and operate as its own brand, but with access to the Ant's network of more than 630 million customers, according to the release. Ant financial is offering MoneyGram stockholders 13.25 US dollars in cash per share.

(Story from AFP, with additional reporting by CGTN)