The acquisition of Genworth Financial Inc., a leader in long-term-care and mortgage insurance, by China Oceanwide Holdings Group has cleared most of the hurdles in the United States, the two firms announced Monday.
The latest piece in the multinational deal was put in place when the New York State Department of Financial Services approved the acquisition by Oceanwide of Genworth Life Insurance Company of New York.
The $2.7 billion deal between the insurance giant and Oceanwide, a privately held, family-owned international financial holding group, was originally announced in 2016, and the two firms have been in the process of obtaining the necessary state and federal approvals in the United States and elsewhere in the ensuing months.
Regulators in Virginia, North Carolina, South Carolina and Vermont approved the acquisition of Genworth subsidiaries in those states earlier.
The closing of the transaction remains subject to other regulatory approvals in China and Canada and by the Financial Industry Regulatory Authority. The merger agreement has a January 31 deadline for obtaining all necessary approvals.
Genworth CEO Tom McInerney said the Oceanwide deal was the “best option” for the company after it was hit by losses on its long-term-care coverage, according to Bloomberg. Genworth Financial, headquartered in Richmond, Va., is a Fortune 500 insurance holding company.
Oceanwide businesses include operations in financial services, energy, technology information services, culture and media, and real estate assets globally, including in the United States.