Virginia Regulator Reapproves Proposed Transaction Genworth and Oceanwide Extend Merger Agreement

On July 8th, the Virginia State Corporation Commission (SCC) approved the proposed transaction between Genworth Financial, Inc. and China Oceanwide Holdings Group Co., Ltd. The approval came after the SCC deemed that the merger agreement was in the best interest of Genworth`s policyholders and the general public.

This news comes as a major milestone for Genworth and Oceanwide, who have been working towards this merger since 2016. The approval by the SCC is one of the final regulatory hurdles that the companies needed to clear before the transaction can be completed. Despite previous setbacks, this latest development indicates that the companies are closer than ever to finalizing the merger.

According to the merger agreement, China Oceanwide will acquire Genworth for $5.43 per share in cash, which values the company at approximately $2.7 billion. If completed, the merger will allow China Oceanwide to expand its presence in the U.S. market and further its strategic goals. Meanwhile, Genworth`s shareholders will receive a fair price for their shares.

However, the merger has faced regulatory challenges since its inception. The companies have had to navigate a complex regulatory landscape that has at times seemed hostile to foreign investment in U.S. companies. In addition to the SCC approval, the transaction still requires approval from the Committee on Foreign Investment in the United States (CFIUS) and the Chinese government.

Nonetheless, the extension of the merger agreement between Genworth and Oceanwide until September 30, 2021, indicates that both companies remain committed to the transaction. The companies have noted that they are continuing to work towards closing the deal as soon as possible.

In conclusion, the recent approval of the proposed transaction between Genworth and Oceanwide by the Virginia SCC is a significant development for both companies. It demonstrates that the companies have made progress in overcoming the regulatory hurdles that have plagued the merger. While there are still several steps to be taken before the transaction can be completed, the extension of the merger agreement and the recent approval by the SCC suggest that the companies are moving closer to achieving their goal.