China Oceanwide-Genworth Financial deal hurdles national security review

by Francis Monfort12 Jun 2018

The acquisition by international financial holding group China Oceanwide of insurance holding company Genworth Financial has now made progress after the Committee on Foreign Investment in the United States (CFIUS) completed its review of the proposed deal.

The CFIUS found that there are no unresolved national security concerns with respect to the transaction. In connection with the review, the two companies entered a mitigation agreement under which Genworth will be required to use a US-based, third-party service provider to manage and protect the personal data of its US policyholders.

The conclusion of the review satisfies one of the conditions to the closing of the transaction.

"We are pleased that CFIUS has completed its review of our transaction and look forward to working with Oceanwide to obtain the remaining regulatory approvals needed and satisfy other conditions necessary to close the transaction as soon as possible," Genworth President and CEO Tom McInerney said.

"Successfully concluding the CFIUS process is a major step in our efforts to complete this transaction, which will strengthen Genworth's financial position and allow us to bring Genworth's insurance expertise to China,” Oceanwide Chairman Lu Zhiqiang said.

The deal continues to be subject to other closing conditions such as the receipt of required regulatory approvals in the US, China, and other international jurisdictions. The companies are engaging with relevant regulators regarding the pending applications.

Genworth Financial owns Genworth Mortgage Insurance.

 

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