Beijing-headquartered Anbang Insurance Group will let its agreement to acquire US annuities and life insurer Fidelity & Guaranty Life (FGL) for US$1.6 billion lapse, after failing to secure all the necessary regulatory approvals, says Reuters in an exclusive report citing people familiar with the matter.
While Anbang's FGL acquisition had received clearance from the Committee on Foreign Investment in the United States (CFIUS), a US government panel that scrutinises deals for potential national security concerns, it could not get past some US state regulators.
FGL had extended its merger agreement with Anbang, which was signed in November 2015, to 17 April after it was set to expire on 8 February. Had Anbang secured a public hearing with Iowa's financial regulator by 17 April, it could have extended the expiration date to 31 May.
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 US state regulators after clearing CFIUS, but noted that the Beijing-based group had pushed back against making some of the disclosures required.
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. Not all attempts at a deal have been successful. Last year, Anbang abandoned its attempt to acquire Starwood Hotels & Resorts Worldwide for $14 billion.