Anbang's Overseas Bids May Fall Through Because of Chinese Regulator's Opposition
Yicai Global
/SOURCE : Yicai
Anbang's Overseas Bids May Fall Through Because of Chinese Regulator's Opposition

(CBN Global) March 23 -- Anbang Insurance Group's bids to take over two overseas hotel businesses are in jeopardy because the China Insurance Regulatory Commission opposes any deals as the group's foreign assets have crossed a threshold, sources have told CBN.

Regulations state that overseas investments by the nation's insurers may not exceed "15 percent of total assets held at the end of the previous year." To comply, Anbang's total assets in 2015 would need to have been at least CNY1.14 trillion (USD175.5 billion). Consolidated assets are unlikely to have reached CNY1 trillion.

Financial statements for 2014 show Anbang Life had assets of CNY119.5 billion and Anbang Property, CNY208.8 billion.

Together with the new businesses Anbang seeks to buy, total overseas investments would reach CNY171.6 billion. In the first week of this month, it agreed to buy Strategic Hotels & Resorts from Blackstone Group for USD6.5 billion and made a USD13.2 billion bid for Starwood Hotels. Even if the company raised its offers, it is unlikely the deals would go through.

The Beijing-based insurer began making overseas investments in 2014, famously purchasing the Waldorf-Astoria Hotel in New York from Hilton for USD1.95 billion. At that point it had completed transactions totaling USD6.9 billion.

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