Genworth and Oceanwide push back merger agreement
Genworth Financial and China Oceanwide Holdings have agreed to terminate their previously announced merger agreement and extended the previous deadline of November 30 to April 1, 2018, allowing for additional time for regulatory reviews of the transaction.
Genworth president and CEO Tom McInerney said the company is making good progress in its discussions with a US third-party service provider about proposed mitigation approaches, which he believes justifies the merger agreement extensions.
Genworth expects to refile its joint voluntary notice with the Committee on Foreign Investment in the United Stated (CFIUS) in the near term.
He commented: “Our Board continues to strongly believe that the transaction with Oceanwide is the best option for our shareholders, policyholders and other stakeholders."
Lu Zhiqiang, chairman of Oceanwide added: "I believe the merger will strengthen Genworth's financial position in the US as well as address the increasing need for long term care insurance in China, which is why we remain committed to the transaction and look forward to continuing to work closely with Genworth and the regulators reviewing our transaction to close the transaction as soon as possible."
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