Genworth Financial moves closer to acquisition
Long-delayed takeover of Fortune 500 insurance holding company clears another hurdle
Henrico County-based Genworth Financial Inc. has cleared another regulatory hurdle in its long-delayed takeover bid by China Oceanwide Holdings Group Co. Ltd. On Tuesday, 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 (GLICNY).
In connection with the reapproval, Genworth will contribute $100 million to GLICNY at the closing of the Oceanwide transaction.
Genworth and Oceanwide are discussing another “short extension” of the merger agreement beyond the current deadline of March 31, according to a statement from the companies.
Genworth is a Fortune 500 insurance holding company. In 2016, it announced a proposed $2.7 billion takeover by China Oceanwide. The deadline for its completion has been pushed back repeatedly because of review by government regulators. 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.