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Chinese Regulators Take Control of Anbang
Anbang Insurance Group Co. was seized by China’s government, which will prosecute its founder Wu Xiaohui for alleged fraud, according to a report in Bloomberg. The giant insurance company has 2 trillion yuan ($315 billion) in assets, and the move represents China’s largest ever takeover of a private company.
Anbang acquired New York’s Waldorf Astoria for nearly $2 billion, and made other real estate investments over the past several years.
China’s main financial regulators plan to take control of Anbang for at least a year. Wu will be removed as chairman, and charged with fundraising fraud and embezzlement. The takeover may end in a year if asset dispositions are completed, strategic shareholders inject capital and the company is stable. Government control can be extended by as much as a year if needed, though Anbang is expected to remain a private company.
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- ◦Sale/Acquisition
