After Years of Waiting for OK, Genworth Ends Buyout by China’s Oceanwide

April 7, 2021 by

Genworth Financial Inc. has terminated a $2.7 billion buyout agreement with investment firm China Oceanwide Holdings Group Co., the U.S. insurer said on Tuesday.

Originally proposed in October 2016, the merger was stalled for years over concerns about Chinese access to sensitive data of U.S. citizens.

Shares of Genworth fell more than 6% in extended trading.

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“Greater clarity about Genworth’s future is needed now in order for the company to execute its plans to maximize shareholder value,” Genworth’s non-executive chairman James Riepe said, explaining the rationale behind the move.

Genworth said its revised plans include a potential partial IPO of its U.S. mortgage insurance business.

The insurer said it will continue to explore partnerships with China Oceanwide to bring long-term care insurance products to the Chinese market.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Ramakrishnan M.)