Genworth Seeks More Time for Approval of $2.7 Billion China Deal
May 2, 2017 by Bloomberg News
(Bloomberg) — Genworth Financial Inc. is seeking more time to convince regulators they should approve the company’s plan to sell itself to China Oceanwide Holdings Group Co.
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The companies have refiled their notice to Committee on Foreign Investment in the U.S. to allow more time for a review of their proposed merger, according to a PR Newswire statement Friday from Richmond, Virginia-based Genworth. Acceptance of the refiling would trigger a new 30-day review period, which can be followed by a 45-day extension, according to the statement. The companies are targeting a completion of the deal by the middle of this year.
Genworth agreed in October to sell itself for about $2.7 billion, or $5.43 a share. The stock has been trading closer to $4 for weeks, on investor doubts about whether the deal will be completed.
“Genworth and Oceanwide are continuing to work diligently to satisfy the closing conditions under the merger agreement and plan to continue to actively engage in further discussions with CFIUS during its review,” the U.S. company said in the statement. “There can be no assurances, however, that CFIUS will ultimately agree to clear the transaction.”
Genworth is a major player in the mortgage insurance market, the long-term care insurance market and the annuity market.
Tom McInerney, Genworth’s president, said in March that the companies were focusing on work with regulators in the United States, China and other applicable markets and still hoped to complete the deal by mid-2017.
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