Could Congress undo HNA’s US acquisitions?

Lawmakers call for stricter oversight of Chinese conglomerate

New York /
Dec.December 21, 2017 06:07 PM

Rep. Robert Pittenger (R., N.C.) and HNA’s CEO Adam Tan (Credit: HNA)

Federal lawmakers are calling for more stringent oversight of HNA Group’s U.S. acquisitions and might even go as far as taking back approval of some earlier deals.

Earlier this month a U.S. company called Ness Technologies sued HNA. It alleged that the Chinese conglomerate shared “knowingly false, inconsistent, and misleading information” about its ownership and government ties to federal agencies, which were reviewing HNA’s planned acquisition of a Ness subsidiary. The deal ultimately fell apart.

“If these allegations are true, the government should consider using its ability to suspend future HNA transactions or retroactively reopen previous HNA agreements,” Rep. Robert Pittenger told the Wall Street Journal.

Meanwhile lawmakers are pushing a bipartisan bill that would give the Committee on Foreign Investment in the U.S. (CFIUS) more power to investigate and possibly block deals.

“The claims raised by Ness are further proof that Congress needs to enact long-overdue CFIUS reform, which include increasing the resources available to fully investigate transactions,” Rep. Rosa DeLauro told the Journal.

HNA has been an active investor in New York’s real estate market in recent years and shelled out $2.2 billion for 245 Park Avenue in May, the priciest building sale in the city this year. [WSJ] — Konrad Putzier


Related Articles

arrow_forward_ios
Donald Trump and Allen Weisselberg with Trump Tower
Ex-Trump CFO Allen Weisselberg pleads guilty, will testify against firm
Ex-Trump CFO Allen Weisselberg pleads guilty, will testify against firm
From left: John Perez, Christian Amato and Nathalia Fernandez in front of Jacobi Hospital in the Bronx (Getty Images, JacobiPeds.org, ChristianAmato.com, John Perez)
Candidates back affordable housing, but not in their back yard
Candidates back affordable housing, but not in their back yard
Mayor Eric Adams and 700 Eighth Avenue (Google Maps, LoopNet)
Midtown’s Row hotel to house up to 600 migrant families
Midtown’s Row hotel to house up to 600 migrant families
From left: Donald Trump and former Trump CFO Allen Weisselberg (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images)
Former Trump CFO close to plea deal in tax fraud case: report
Former Trump CFO close to plea deal in tax fraud case: report
Arlington Village at 3100-3124 Atlantic Avenue in East New York, Brooklyn (Google Maps, Getty)
Developing in downtrodden areas gets dicey
Developing in downtrodden areas gets dicey
Gainesville mayor Lauren Poe (Facebook, Getty)
Gainesville close to ending single-family zoning
Gainesville close to ending single-family zoning
Mayor of New York City Eric Adams (Photo Illustration by The Real Deal with Getty Images)
NYC turns back to hotels to grow homeless shelters
NYC turns back to hotels to grow homeless shelters
Council member Keith Powers (Manhattan Community Board 5)
Defeated by industry, criminal background check bill returns
Defeated by industry, criminal background check bill returns
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...