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        US M & A tighter Chinese buyers seek insurance


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Insurers have begun to protect cross-border deals that could fail because of regulatory scrutiny, targeting Chinese companies that are actively seeking US acquisitions.

In the past year, UK-based Aon (AON.N) became the first operator to offer this new type of insurance, insuring M & A deals that may face opposition from the US Foreign Investment Review Board (CFIUS), insurance executives and bankers said.

Other insurance brokers, including Jardine Lloyd Thompson Group, will also provide insurance against CFIUS risks.

CFIUS is responsible for reviewing transactions to determine if they affect national security.

Bankers and lawyers point out that providing insurance against CFIUS review risks is a requirement for Chinese buyers to insist that sellers insist that they pay a "reverse split fee" if the transaction is blocked.

CFIUS has blunted some of the most notable deals. US President-elect Trump's tough remarks about China, the Chinese investment in the United States the future is more uncertain.

However, in view of China's economic growth slowdown, so the regulatory tightening does not block a large number of Chinese buyers to invest in the US momentum.


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