Troubled Oceanwide-Genworth merger stays alive

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The deadline for China Oceanwide Holdings’ acquisition of Genworth Financial Inc. has been prolonged but once more, to provide room for a US authorities assessment.

The deliberate transaction, value US$2.7 billion, had its deadline prolonged to April 01, 2018. Announced greater than a yr in the past, the acquisition has been held up by having to safe the approval of the Committee on Foreign Investment within the United States (CFIUS), an inter-agency panel that investigates overseas takeovers of American corporations for nationwide safety causes.

The extension will give Virginia-based Genworth and Beijing-based Oceanwide extra time to change the deal’s phrases with the intention to fulfill the CFIUS’ considerations, reported Reuters. According to some analysts, there might be some factors raised concerning the Chinese authorities’s potential entry to Genworth’s buyer information.

In a submitting made in October, each Genworth and Oceanwide agreed to contain a US-based firm as a third-party service supplier to manage insurance policies within the US, and to limit Oceanwide’s entry to buyer information.

“We are making good progress in our discussions with a US third-party service provider about proposed mitigation approaches, which justified the merger agreement extension,” Genworth president and CEO Tom McInerney mentioned in a press release.

The corporations count on to file their third attraction to the CFIUS “in the near term,” which is able to give the committee one other 75 days to check the deal.

According to the Reuters report, it’s essential that Genworth safe a takeover deal, as it’s watching US$600 million value of debt that can mature in May 2018. In case a takeover doesn’t push by, then Genworth could have to interact in asset gross sales and different refinancing strategies to satisfy the debt.

Related tales:
Oceanwide-Genworth deal runs into bother … once more
Oceanwide’s acquisition of Genworth inching nearer to completion
Genworth shareholders comply with $2.7 billion acquisition by China Oceanwide

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