Why the MoneyGram Merger Was a Threat

There's been a lot of hand-wringing over Ant Financial's failed acquisition of MoneyGram International Inc. this week. But the decision by U.S. officials to effectively block the deal isn't an indication of souring U.S.-China ties or of Trumpian protectionism. Instead, it's simply an acknowledgement of a new reality: In the information age, consumer data is a national-security interest.

As a money-transfer service with some 350,000 locations in 200 countries, MoneyGram was a sensible strategic target for Ant, which is hoping to expand its business overseas. The problem was that the $1.2 billion deal would've given a Chinese company with government ties extensive access to U.S. consumer financial data, including a large military customer base.