Ant Financial service group is Alibaba’s financial domain. Alibaba is the largest online retailing company of China. In latest the news Alibaba is ready to purchase US payment company Moneygram for $880 million.
This is not for the first time Alibaba is entering in financial firm purchasing. Alibaba has already purchased biometric security company EyeVerify in 2016 which is of worth $100 million.
Financial worth of Moneygram:
Moneygram is the network of 2.4 billion banks and mobile accounts and 350,000 stores in more than 200 countries. Moneygram business is focused on peer to peer transfer to finances, although it provides the services to the user to pay bills and money if they do not have bank accounts. The company is also serving the user who does not have tradition bank accounts.
Eric Jing, CEO of Ant Financial,”The procurement of MoneyGram is a substantial milestone in our mission to bring inclusive financial services to users around the globe.”
Future orientation of the transaction:
Moneygram has a headquarter in Alex Holmes, after the purchase of Moneygram by Ant Financial the headquarter would be the same under the same leadership of CEO. Ant financial has said that they will not change CEO of shift organization, the company would be running on the old patterns.
The Company would be sold in $880 million but the brand name would be same even after payment of transaction money.While the transaction is expected to be closed in 2017.
Alibaba wants to expand it’s business to multinationals:
Jack Ma-owned Alibaba and the financial wing of Alibaba the Ant Financial has a clear aim to target the American market. On larger landscape business expansion and target markets is the policy of primarily all Chinese business entities. The timing of merger is very critical because Trump’s visa ban policies are at The climax. Trumps has anti-China sentiments even before the elections, although in Trump Jack Ma meeting weather seems clear.
The procurement of Moneygram is a second business deal of Jack Ma in the United States the first one is already mentioned is about the biometric system.This is an online database authentication system.