(Reuters) – Chinese conglomerate HNA Group Co is set to drop its pursuit of hedge-fund investment firm SkyBridge Capital, after facing resistance from Committee on Foreign Investment in the United States (CFIUS), the Wall Street Journal reported on Monday.
The two firms may strike a partnership agreement instead, but the size and scope of it is unclear, the report said, citing people familiar with the matter. (on.wsj.com/2KlGVot)
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, which was founded by onetime White House communications chief Anthony Scaramucci, had about $10 billion in assets under management or advisement as of February.
The deal would have valued SkyBridge at around $200 million, the report said.
Reporting by Diptendu Lahiri in Bengaluru; Editing by Arun Koyyur