US-based insurer Fidelity & Guaranty Life has terminated its agreement for a US$1.6 billion acquisition by
Anbang Insurance Group Co. of China, saying it will look into other options.
Fidelity & Guaranty said in a statement on Monday that it “is continuing to evaluate strategic alternatives to maximize shareholder value and has received interest from a number of parties.”
“FGL has no remaining obligations under the merger agreement and may enter into an alternative transaction,” it added.
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In 2015, FGL agreed to be acquired by Anbang at a price of US$26.80 a share. However, the deal ran into regulatory obstacles and the valuations of insurers in the US rose, giving FGL a reason to look for a new buyer.
This isn’t the first failed deal in the US for Anbang, which started out in China in 2004 as an auto insurer. Last year, a consortium led by Anbang cancelled its bid to buy Starwood Hotels and Resorts Worldwide Inc. for US$14 billion, citing “various market considerations.” In October, its planned purchase of a hotel in southern California was called off after US national security concerns were raised due to the property being near a naval base.
Just last month, the insurance group called off talks with Kushner Companies to redevelop a 41-storey office tower in Manhattan. Kushner Companies is owned by the family of Jared Kushner, a son-in-law and senior adviser of US President Donald Trump.
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