Genworth and China Oceanwide provide update on merger agreement
Genworth Financial and China Oceanwide Holdings have withdrawn and re-filed their joint voluntary notice with the Committee on Foreign Investment in the United States - CFIUS - a second time to provide CFIUS more time to review and discuss the proposed transaction between Genworth and Oceanwide contemplated under the merger agreement entered into by the parties on October 21, 2016. CFIUS' acceptance of the joint voluntary notice will commence a new 30-day review period, which may be followed by an additional 45-day investigation period. Closing of the proposed transaction remains subject to other conditions, including the receipt of required regulatory approvals in the U.S., China, and other international jurisdictions. Genworth recently received approval from the Delaware Department of Insurance and the Virginia Bureau of Insurance for the remaining internal reinsurance and recapture transactions required, under the merger agreement, as a condition to the purchase by a Genworth holding company of Genworth Life and Annuity Insurance Company from Genworth Life Insurance Company. These transactions have been completed effective July 1. It now appears that the timing of the regulatory reviews will likely delay the completion of the transaction to later than the originally targeted time frame of the middle of 2017. Genworth and Oceanwide are discussing an extension of the August 31 deadline set forth in the merger agreement and will make a final decision regarding the deadline in the coming weeks.