China Oceanwide Holdings Group Co. Ltd. and Genworth Financial Inc. announced Thursday that China Oceanwide is still trying to acquire Genworth.
Genworth reported that one of the remaining obstacles is Canadian regulators’ worries about data security.
“Canadian regulators have not outlined a timeframe for the completion of their review of the transaction or requested any additional information at this time,” Genworth said, in a comment included in the extension announcement.
China Oceanwide is a Beijing-based real estate development and financial services company.
Genworth is a Richmond, Virginia-based company that has been a major player in the U.S. life, annuity and mortgage insurance markets, and a dominant player in the long-term care insurance market. It’s still selling new LTCI coverage and immediate annuities, and it’s still selling new mortgage insurance in the United States, Canada and Australia.
China Oceanwide first announced plans to acquire Genworth in October 2016. The companies agreed to their eighth deal completion extension deadline in January. In January, they set March 15 — today — as their new deadline.
The companies have now agreed to push the deadline back to April 30.
The companies note that, if the closing of the deal takes place after March 31, they’ll have to talk to regulators about adjustments in previously announced payment arrangements.
China Oceanwide has said that will contribute $1.5 billion in capital to Genworth.
Genworth has said it will make a $175 million capital commitment to Genworth Life Insurance Company.
Lu Zhiqiang, chairman of China Oceanwide, said in a statement about the deal that is company remains remain committed to its transaction with Genworth.
“We look forward to closing the transaction as soon as possible,” Lu said in the statement.
Regulatory Approval Efforts
Genworth and China Oceanwide have already received deal approvals from all U.S. insurance regulators.
Here’s what the companies said about the approvals they still need.
A U.S. agency, the Committee on Foreign Investment in the United States (CFIUS), previously took some time to approve the China Oceanwide-Genworth deal, but it ultimately agreed to bless the deal, after the companies agreed to have an outside company take charge of handling Genworth customers’ data.
Canadian regulators have also expressed concerns about safeguarding of Genworth customers’ personally identifiable information, Genworth said in the new extension announcement.
Genworth and Oceanwide have fully responded to all information requests to date, the companies said.
The U.S. Financial Industry Regulatory Authority (FINRA) still needs to approve the deal. But Genworth noted that, under FINRA rules, China Oceanwide can close on the deal before FINRA approves it.
Genworth and China Oceanwide said China Oceanwide still has to get permission from regulators in China to transfer funds, and to convert funds held in Chinese currency into U.S. dollars.
Links to information about the China Oceanwide-Genwoth deal, including a copy of the new deal extension agreement, are available here.
Correction: An earlier version of this article described the China Oceanwide-Genworth announcement date incorrectly. The deal was announced in October 2016.
— Read New York Approves China Oceanwide-Genworth Deal, on ThinkAdvisor.