Ping An Life Insurance has received a go signal from China’s market regulator in its acquisition bid for New Founder Group.
The State Administration for Market Regulation’s anti-trust bureau announced the approval on its website on Tuesday, Reuters reported. Financial terms of the deal were not disclosed by the regulator.
New Founder Group came into existence amid the restructuring proceedings of Founder Group, a conglomerate founded by Peking University and engaged in various businesses in the IT, pharmaceuticals, real estate, finance, and commodities trading industries.
In April, Ping An announced its plan to buy a majority holding in New Founder Group, ranging from 51.1% to 70%, for RMB37.05 billion (SG$7.79 billion) up to RMB50.75 billion. Ping An said it plans to lead a consortium that will work actively in the reorganisation of Founder Group.
In late 2019, Founder Group began its slide by defaulting on a bond worth RMB2 billion. Its total bad debts ballooned to close to US$40 billion, and the company is now technically insolvent, with liabilities exceeding assets.
