Mirae Asset scraps $5.8 bln deal to buy U.S. hotels from China's Anbang (updated)

Mirae Asset Securities

04/05/2020 06:39

(Adds Mirae comment)
    SEOUL, May 4 (Reuters) - South Korea's Mirae Asset Global
Investments said on Monday that it has terminated a $5.8 billion
deal to buy 15 U.S. hotels from China's Anbang Insurance Group
 ANBANG.UL .
    The asset manager said in a statement that Anbang did not
remedy breaches of certain obligations regarding the September
contract, resulting in the termination of the deal.     
    A consortium led by Mirae agreed last year to buy the hotels
in U.S. cities, including in New York, San Francisco and Los
Angeles, from Anbang, which had been selling some of its
overseas assets after the Chinese government took control of the
troubled insurer in 2018.  urn:newsml:reuters.com:*:nL3N2620HB 
    Mirae Asset said Anbang had filed litigation against it and
and affiliated entities in the United States last week, adding
it denied AnBang’s claims.  
    "Mirae Asset will protect its rights vigorously in
accordance with the terms of the agreement," it said in a
statement.
    The collapsed deal is the latest merger or acquisition at
risk as the coronavirus pandemic impacts valuations and clouds
the business outlook and funding prospects.
    Travel and tourism industries are one of the hardest hit by
the pandemic, with hotels in affected regions seeing sharp
declines in bookings.

 (Reporting by Hyunjoo Jin; Editing by Himani Sarkar and Kim
Coghill)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))