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Report: Chinese firm's Brookdale Senior Living acquisition stalls over financing

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Report: Chinese firm's Brookdale Senior Living acquisition stalls over financing

A Chinese firm has had trouble securing financing to acquire Brookdale Senior Living Inc., stalling the potential buyout, the Financial Times reported.

Zhonghong Zhuoye Group Co. Ltd. was close to an agreement to buy the senior living operator in June, with the deal rumored to value Brookdale up to $4 billion, but has had trouble getting approval from regulators for one of its loans from a Chinese bank, the outlet reported, citing sources familiar with the matter.

According to the report, an offshore loan from the bank has already been approved, but the bank has put a separate onshore loan on hold because it now considers Zhonghong to be "high risk."

Chinese regulators have increased their scrutiny of companies' outbound acquisitions in recent months, with the banking regulator asking banks to watch their exposure to companies that have been especially active overseas.