Mirae Asset Wins Lawsuit Against China Anbang Insurance (Comprehensive)

[Asia Economy Reporter Hwang Junho] Mirae Asset Global Investments has won the final verdict in a legal battle against China's Anbang Insurance (now Dajia Insurance) over the acquisition contract of 15 hotels in the United States. As a result, Mirae Asset Global Investments will be able to receive 700 billion KRW in deposits and other payments.

On the 9th, according to Mirae Asset Global Investments, the Delaware Supreme Court in the U.S. finalized the first-instance ruling recognizing the termination of the hotel acquisition contract filed by Mirae Asset against Anbang Insurance.

Accordingly, Anbang Insurance must pay Mirae Asset Global Investments the hotel acquisition deposit of 580 million USD along with interest and litigation costs. This amounts to approximately 700 billion KRW.

In September 2019, Mirae Asset Securities, Mirae Asset Global Investments, and others signed an acquisition contract to purchase 15 five-star hotels in the U.S., including the New York JW Marriott Essex House, owned by Anbang Insurance, for 5.8 billion USD. The deposit was 10% of the total acquisition price, amounting to 580 million USD. However, the contract was terminated after eight months. In May of last year, Mirae Asset notified Anbang Insurance of the termination, citing non-fulfillment of contractual obligations.

Mirae Asset emphasized that Anbang Insurance did not disclose ongoing lawsuits related to the hotels it owned in the U.S. and did not share relevant documents, rendering the contract invalid. In response, Anbang Insurance filed a lawsuit in U.S. courts, claiming Mirae Asset terminated the contract due to a "simple change of mind," escalating the legal dispute between the two parties.

A representative of Mirae Asset Global Investments stated, "Mirae Asset terminated the contract because Anbang Insurance failed to meet the preconditions for closing the deal by hiding abnormal business operations and ownership disputes," adding, "With the final victory, we will be able to receive the deposit and related costs."