Anbang Said to Be Committed to FGL Deal After Starwood Retreatby and
Chinese insurer has CFIUS approval to buy Fidelity & Guaranty
FGL agreed in November to sell itself to China's Anbang
Anbang Insurance Group Co. is committed to completing an agreement to buy Fidelity & Guaranty Life in the U.S. after the Chinese firm backed away from an offer to acquire Starwood Hotels & Resorts Worldwide Inc., according to a person familiar with the matter.
The Chinese company doesn’t see obstacles to the deal for Des Moines, Iowa-based FGL after winning approval last month from the Committee on Foreign Investment in the United States, said the person, who asked not to be identified discussing a pending transaction. Arielle Patrick, a spokeswoman for Anbang at Weber Shandwick, confirmed the CFIUS approval and declined to provide further comment.
Anbang agreed in November to pay about $1.6 billion, or $26.80 a share, to buy FGL, which is majority-owned by HRG Group Inc. and has about $25 billion in assets. The U.S insurer rose 8 cents to $26.26 at 10:27 a.m. in New York, headed for its first advance since March 24.
The Chinese company led a group that offered $14 billion to acquire Starwood. The bidders not to proceed because of “various market considerations,” according to a statement Thursday. Anbang also owns the Waldorf Astoria hotel in New York.
HRG, which counts Richard Handler’s Leucadia National Corp. as its top shareholder, is seeking to exit FGL as the company shifts its focus to operations such as Spectrum Brands Holdings Inc., the maker of Rayovac batteries and George Foreman grills. Spectrum announced a deal last year to buy the owner of Armor All car-care products.