Henrico-based Genworth Financial Inc. and China-based Oceanwide Holdings Group Co. Ltd. announced on Monday that Oceanside’s long-delayed $2.7 billion acquisition of Genworth has been reapproved by China’s National Development and Reform Commission, and the acquisition has been postponed until the end of December.
With the Chinese government’s reapproval, Oceanwide will now move forward on the few remaining regulatory steps required to close its $2.7 billion acquisition of Genworth. Among those steps are seeking clearance for currency conversion, the transfer of the balance of the transaction funds from China’s State Administration of Foreign Exchange and obtaining confirmation from the Delaware Department of Insurance that the acquisition of Genworth’s Delaware-domiciled insurer may proceed under the existing approval.
To allow additional time for Oceanwide to complete these final steps, the parties are working on extending each party’s right to terminate their merger agreement until Dec. 31, 2020. The parties are also working on a 90-day extension of each of the three $500 million tranches under the post-close Oceanwide capital plan.
