(Yicai Global) April 17 -- China's Anbang Insurance Group is poised to abandon its plan to buy out US annuity and life insurer Fidelity & Guaranty Life [NYSE:FGL] (FGL) for USD1.6 billion as it has failed to secure all the necessary regulatory approvals.
This marks another failed takeover attempt in the US by Anbang following its abortive plan last year to acquire US-based Starwood Hotels & Resorts Worldwide Inc. [NYSE:HOT] Reuters reported today. Though Anbang received clearance from the Committee on Foreign Investment in the United States (CFIUS), it failed to gain approvals from some US state regulators.
Anbang reached a merger agreement with FGL in November 2015, which was set to expire on Feb. 8, but was later extended to April 17. The agreement could have been extended again to May 31 if Anbang had secured a public hearing by Iowa's financial regulator by April 17. However, Anbang failed to satisfy the conditions, insiders said. The deal also required approval from New York State financial regulators, but Anbang has given up its efforts to secure it.
Insiders did not say why Anbang failed to secure approvals from US state regulators after receiving CFIUS clearance, but added that Anbang declined to disclose information authorities demanded.
FGL said it will solicit acquisition offers from other third parties when it announced the extension of its merger agreement with Anbang in February. FGL is currently in negotiations with other bidders, including Athene Holding Ltd., insiders said.