China’s Cinda Withdraws Ant Group Deal Following State Pressure

China Cinda Asset Management has withdrawn a deal to buy a 20% stake in fintech giant Ant Group’s consumer finance arm. The deal, which was worth around $944 million, was scrapped because of pressure from state authorities. Cinda is one of China’s four biggest state owned asset management companies.

Cinda, while announcing its withdrawal on Thursday, did not elaborate on the reasons of the decision.

Ant Group, an Alibaba affiliate, was hoping for a revival with the deal after its huge $37 billion dual-listing was derailed in November 2020.

Cinda’s investment in Ant was backed by its primary regulator, the China Banking and Insurance Regulatory Commission (CBIRC), but it failed to get the support from higher government authorities.

China’s State Council was one of the authorities that questioned the deal while Ant’s core business has still been in the middle of restructuring.

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