Genworth and Oceanwide extend merger deadline

Mortgage insurer Genworth Financial has announced that it is extending the deadline for its merger with China Oceanwide Holdings Group (Oceanwide).

The eighth waiver and agreement extends the previous deadline of Jan. 31 to March 15 to allow for pending regulatory reviews and the upcoming Chinese New Year holiday, which begins on Feb. 4.

The transaction has received all required US insurance regulatory approvals. The closing of the transaction remains subject to other conditions, including the receipt of other required regulatory approvals in Canada and by the US Financial Industry Regulatory Authority (FINRA). In addition, Oceanwide will need to receive clearance in China for currency conversion and the transfer of funds.

"We are pleased with the momentum we've recently achieved with the receipt of required approvals by all of our state regulators, the countries of Australia and New Zealand, and the US government-sponsored enterprises, Fannie Mae and Freddie Mac," said Tom McInerney, president and CEO of Genworth.  "In the meantime, we continue to be actively engaged with FINRA and the Canadian government as they review our transaction."

"We remain committed to the transaction, including the $1.5 billion contribution to Genworth over time following the consummation of the transaction,” said Zhiqiang Lu, chairman of Oceanwide. “The first tranche of $500 million is expected to be contributed by 31 March, 2019, with the remainder expected to be contributed by the end of 2019."