Genworth Financial acquisition delayed again

Deal to acquire Fortune 500 insurance holding company extended to June 30.

Published April 1, 2020 by Richard Foster

The long-delayed $2.7 billion acquisition of Henrico County-based Genworth Financial Inc. by China Oceanwide Holdings Group Co. Ltd. has been postponed again.

The Virginia State Corporation Commission’s Bureau of Insurance reapproved the merger and the companies agreed to a 14th waiver and agreement to each party’s right to terminate the proposed agreement. The latest waiver extends the deal from March 31 to June 30.

“Like Oceanwide, Genworth remains fully committed to closing the transaction as soon as possible.  The parties are very pleased with the progress made in receiving approval from the New York and Virginia regulators,” said Tom McInerney, President & CEO of Genworth. “We understand the necessity of the current extension in light of the unprecedented challenges in global financial markets.”

In December 2019, Genworth completed the sale of the majority stake in its Canadian mortgage insurance company, which was required by Canadian regulators before Oceanside could acquire Genworth. And last month the New York State Department of Financial Services reapproved Oceanwide’s proposed acquisition of Genworth’s New York-based insurance company, Genworth Life Insurance Company of New York.

Genworth is a Fortune 500 insurance holding company. In 2016, it announced the proposed takeover by China Oceanwide. The deadline for its completion has been pushed back repeatedly because of review by government regulators.