This week, Moneygram’s stockholders overwhelmingly voted in favor of the pending transaction with Ant Financial at a special meeting of Moneygram stockholders, held to specifically address the pending purchase.
The outcome of the stockholders’ vote is of little surprise to those in the industry, who have been anticipating this move for months. Despite Euronet throwing their hat into the ring for Moneygram, Ant Financial’s counterbid was likely too good of an offer to refuse for shareholders.
Of the voting outcome, Chief Executive Officer of Moneygram, Alex Holmes said, “We appreciate the strong support from our stockholders in connected with the compelling transaction with Ant Financial. Stockholder approval represents an important milestone on our path to completing the transaction and maximizing value for our stockholders. We are confident our transaction with Ant Financial will create more jobs in the United States, increase competition in our industry, provide new digital solutions and help more customers across the world who depend on innovative and reliable financial connections to friends and family.”
According to Moneygram and Ant Financial, Ant Financial’s purchase of Moneygram will help Moneygram expand its global money transfer solutions and maintain customer security and privacy. Moneygram will also continue to be headquartered in Dallas, Texas and operate under its existing brand.
This purchase will also help Ant Financial, and its payments platform Alipay, expand to Moneygram’s existing network of 630 million users. Despite the shareholder vote, many hurdles must be jumped by Moneygram and Ant Financial for this takeover to be enacted. Like all money transfer companies, regulations will continue to be a major challenge for Moneygram and Ant Financial, and could potentially put a stop to the entire deal.
Not everyone is thrilled by the announcement of Ant FInancial’s purchase of Moneygram, and no, we are not talking about Euronet. Senators Pat Roberts and Jerry Moran, Republicans from Kansas, have written to Treasury Secretary Steve Mnuchin, suggesting that an acquisition by Ant Financial poses security and privacy risks to American citizens. Both senators are calling for an extensive review of the deal, citing security as the major reason for doing so. Moneygram’s CEO, Alex Holmes, responded to their allegations as fear mongering. Only time will tell how seamlessly the purchase will be.
Oanda corporation, a large provider of foreign exchange solutions for individuals and businesses has joined forces with Western Union Business Solutions to develop a new cross-border money transfer solution.
The solution will be accessible through Oanda's website and will provide 24/7 assistance to customers seeking both personal and business transactions - including live rates. Customers can send money in over 130 currencies to over 170 countries and territories. The service is now available in the US, Canada, Australia and the UK - with expansions planned in the near future.
The solution will also allow customers the ability to set up market alerts, so they know when preferred market rates are available.