, Columnist
Anbang Clampdown Deepens Chill for China-to-U.S. Deals
Between the Chinese government on one side and U.S. regulators on the other, takeovers will be tough.
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Good luck getting a China-to-U.S. takeover done these days.
The Chinese government said Friday it was seizing temporary control of Anbang Insurance Group Co. and will prosecute its founder, Wu Xiaohui, for alleged fraud. The move puts a formal end to the debt-fueled hijinks that allowed Anbang to load up on U.S. assets such as New York's Waldorf Astoria Hotel and the bulk of Strategic Hotels & Resorts Inc. While China is unlikely to pursue state takeovers of other big dealmaking conglomerates such as Dalian Wanda Group Co. and Fosun International, the Anbang move puts an exclamation point on its growing regulatory scrutiny of outbound deals and heavy debt loads.