China’s HNA steps back from purchase of Scaramucci’s hedge fund SkyBridge

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(Reuters) – Chinese conglomerate HNA Group Co and Anthony Scaramucci’s hedge-fund investment firm SkyBridge Capital will drop their merger plans after facing resistance from the Committee on Foreign Investment in the United States (CFIUS), the companies said in a statement on Monday.

FILE PHOTO: A HNA Group logo is seen on the building of HNA Plaza in Beijing, China February 9, 2018. REUTERS/Jason Lee/File Photo

SkyBridge Capital decided to sell a majority of itself to RON Transatlantic EG and HNA Capital in the mid of January 2017, four days after Scaramucci accepted a position in President Donald Trump’s administration. (reut.rs/2FuIFIq)

The companies found that it is not in their business interests to pursue the transaction as significant time has passed since the transaction was first announced and due to the uncertain timing of the approval process going forward.

SkyBridge will retain its full investment team which will be led by Ray Nolte and Troy Gayesk.

Anthony Scaramucci, will also return as co-managing partner to focus on planning and marketing efforts for the firm.

The CFIUS has stopped several Chinese companies from acquiring American ones in the past, the most high-profile being Ant Financial’s acquisition of U.S. money transfer company MoneyGram International Inc in January.

SkyBridge had about $10 billion in assets under management or advisement as of February.

Reporting by Diptendu Lahiri in Bengaluru; Editing by Arun Koyyur



Source : Reuters