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June 11, 2018 at 11:28 AM
China Oceanwide Holdings Group Co. Ltd. has moved a big step forward toward acquiring Genworth Financial Inc.
A secretive U.S. national security review agency, the Committee on Foreign Investment in the United States (CFIUS), has approved the deal, the companies announced Saturday.
The companies still need to get approvals for their deal from insurance regulators in Delaware, New York state, China and other jurisdictions.
(Related: Genworth Faces Deal Resistance in Delaware)
China Oceanwide, a Beijing-based real estate developer and financial services company, agreed to acquire Richmond, Virginia-based Genworth in October 2016.
Genworth has been, and continues to be, a major player in the mortgage insurance markets in the United States and other countries.
In the past, Genworth was also a major player in the life insurance, annuity and long-term care insurance markets in the United States. Genworth continues to have large blocks of life insurance, annuities and long-term care insurance on its books. It has suspended new sales of life insurance and annuities in recent years because of concerns about reserves for long-term care insurance obligations.
China Oceanwide and Genworth noted early on that they were having to take steps to get approval for the China Oceanwide acquisition from CFIUS.
Companies seeking approval for deals from CFIUS cannot say much about the CFIUS approval process.
China Oceanwide and Genworth did say, in several notices filed with the U.S. Securities and Exchange Commission, that they were trying to develop “mitigation options” involving an outside company. The companies did not give a clear description of the issues CFIUS wanted Genworth to mitigate.
