Genworth Says It's Seeking Buyers for Canadian Unit

Genworth Financial Inc. says it’s actively trying to sell its Genworth MI Canada mortgage insurance unit, and that it intends to complete efforts to be acquired by China Oceanwide Holdings Group Co. Ltd. by Nov. 30.

Genworth and Oceanwide remain committed to the merger agreement and continue to work towards closing as soon as possible,” Genworth said, in comments made in connection with the release of second-quarter earnings.

(Related: Genworth, Oceanwide Agree to Merger Deadline Extension)

Tom McInerney, Genworth’s president, said in a statement that Genworth hopes selling the Canadian unit will eliminate the need to get approval for the China Oceanwide deal from Canadian financial services regulators. Canadian regulators have had concerns about the protection of Genworth customers’ personal information.

“We remain fully committed to the transaction with Oceanwide and continue to believe that it represents the greatest and most certain value for all Genworth stakeholders,” McInerney said in a statement. “We appreciate Oceanwide’s committed partnership and patience throughout this process and look forward to working towards the successful completion of our transaction.” ”

Lu Zhiqiang, China Oceanwide’s chairman, said in a statement of his own that his company remains committed to the transaction at the original deal purchase price.

The History

Genworth is descended partly from General Electric Co.’s financial services operations.