Genworth Financial merger with Oceanwide moves forward
Genworth Financial and China Oceanwide Holdings Group recently agreed to a fourth waiver and agreement to each party's right to terminate their merger agreement, which extends the previous deadline until July 1.
The new fourth waiver and agreement allow the Committee on Foreign Investment in the United States (CFIUS) to revise and review the merger within an extended time period beyond the earlier deadline of April 1. Further, both parties have admitted that the termination of the agreement might be wrapped up at any time on or before July 1, after the regulating authority has completed the review process and recommended that the president of the U.S. has prohibited the merger proposal.
After, CFIUS' take, the termination agreement also requires certain regulatory approvals in the U.S., China and other foreign jurisdictions where Genworth Financial operates. However, Genworth Financial and Oceanwide have received approval for a merger in Australia from the country's regulating authorities.
"Approval by Australia is an important step in the process of completing the merger with Oceanwide," Tom McInerney, president and CEO of Genworth Financial, said. His Oceanwide counterpart, Chairman Lu Zhiqiang, also welcomed the latest developments.