Genworth and Oceanwide Extend Merger Agreement
Genworth Financial, Inc. and China Oceanwide Holdings Group have announced they have agreed to an eighth waiver and agreement of each party’s right to terminate the previously announced merger agreement. The eighth waiver and agreement extends the previous deadline of January 31, 2019 to March 15, 2019 in consideration of pending regulatory reviews and the upcoming Chinese New Year/Spring Festival holiday, which begins on February 4.
The transaction has received all required U.S. insurance regulatory approvals. The closing of the transaction remains subject to other conditions, including the receipt of other required regulatory approvals in Canada and by the U.S. Financial Industry Regulatory Authority (FINRA). In addition, Oceanwide will need to receive clearance in China for currency conversion and the transfer of funds.
“We are pleased with the momentum we’ve recently achieved with the receipt of required approvals by all of our state regulators, the countries of Australia and New Zealand, and the U.S. Government-Sponsored Enterprises (GSEs) – Fannie Mae and Freddie Mac,” said Tom McInerney, president and CEO of Genworth. “In the meantime, we continue to be actively engaged with FINRA and the Canadian government as they review our transaction.”
Added LU Zhiqiang, chairman of Oceanwide: “We remain committed to the transaction, including the $1.5 billion contribution to Genworth over time following the consummation of the transaction. The first tranche of $500 million is expected to be contributed by March 31, 2019, with the remainder expected to be contributed by the end of 2019.”