On Tuesday, South Korean investment bank Mirae Asset Daewoo Co Ltd stated, it has won a U.S. lawsuit against China’s Anbang Insurance Group.
The development comes in the wake of Mirae Asset affiliates scrapping a $5.8 billion deal to buy 15 U.S. hotels from Anbang, which then had filed a lawsuit against the South Korean investment bank.
In 2019, a consortium led by Mirae had agreed to purchase hotels from Anbang, which had been selling some of its overseas assets after the Chinese government took control of its management in 2018. The deal ran into rough weather following the outbreak of the coronavirus pandemic, which first emerged from Wuhan, China, which placed several M&A deal at risk since it virtually put a stop to global tourism and the travel industry.
While Anbang had filed a suit demanding that Mirae Asset affiliates fulfill their commitments as part of the deal, Mirae affiliates filed a counterclaim demanding that Anbang return the deposit, pay transaction costs, along with related litigation costs, said Mirae in a regulatory filing, on Tuesday.
A court in Delaware, rejected Anbang’s claims demanding payment and ruled that Anbang should return the deposit and pay expenses to the tune of $3.685 million.
While Anbang has been liquidated, some of its assets have been revamped into a new entity called Dajia Insurance Group.
An official for Dajia did not immediately respond to requests for comments.