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China's HNA just saw a $416 million investment pact fall apart after regulators disapproved

Key Points
  • A $416 million investment pact between Global Eagle Entertainment and HNA Group has been called off
  • The venture failed to receive regulatory approval

U.S.-based Global Eagle Entertainment said a $416 million investment pact made last year with a unit of Chinese conglomerate HNA Group has been called off after failing to receive regulatory approval.

Global Eagle, in a securities filing late on Tuesday, said the companies did not secure approval from the Committee on Foreign Investment in the United States (CFIUS) before the "outside date" under the investment agreement.

In November, Global Eagle and HNA unit Beijing Shareco Technologies said Shareco would acquire up to 34.9 percent of the U.S. firm for about $416 million and become its single largest shareholder.

The pair also planned to form a Chinese joint venture focused on in-flight connectivity and entertainment.

HNA and Beijing Shareco did not immediately respond to Reuters request for comment.

For more on HNA Group, see this CNBC report: A huge Chinese conglomerate just revealed its ownership — and a lot of governments are watching