Canadian regulators are continuing to throw data security sand into the wheels of efforts by Genworth Financial Inc. to get acquired by China Oceanwide Holdings Group Co. Ltd.
Canadian regulators had been objecting to the possibility that China Oceanwide — a Beijing-based real estate development and financial services company — would end up with control over Genworth’s mortgage insurance unit in Canada, Genworth MI Canada Inc.
Genworth has been trying to address Canada’s national security and data protection concerns by selling the Canadian mortgage insurance unit to Brookfield Business Partners L.P. of Toronto before completing the China Oceanwide deal, to keep the unit from coming under the control of China Oceanwide, and to raise cash that Genworth can use even if the China Oceanwide deal falls through.
Now, Genworth says, Canadian regulators say they have concerns about the possibility of Brookfield getting control over the Canadian mortgage insurance unit.
“In particular, they are focused on the continued protection of Canadian customer data during the period after the closing of the proposed transaction, when Genworth will be providing certain transition services to Genworth Canada before it transitions away from Genworth’s information technology platforms,” Genworth said Tuesday.
Genworth said it’s working with Brookfield to assure the Canadian regulators that Canadian customers’ information will have appropriate protections.
“Genworth and Brookfield Business Partners have received all other required approvals to complete the sale of Genworth Canada and continue to target a closing of the Proposed Transaction by the end of 2019,” Genworth said.