Oceanwide Holdings, a China-based diversified business conglomerate, has received approval from the Virginia State Corporation Commission, Bureau of Insurance, to acquire Genworth’s Virginia-domiciled insurance companies.
The regulatory approval has paved ways for Oceanwide to complete the proposed acquisition of Genworth’s insurance business, which includes Genworth Life and Annuity Insurance Company and Jamestown Life Insurance Company.
As per the agreement, which was announced in October 2016, Oceanwide agreed to acquire New York-listed insurance group Genworth Financial in a cash transaction valued at $2.7bn.
Under the original agreement, both parties agreed to conclude the transaction in the middle of 2017 with a deadline of August 31, which has been indefinitely extended by the two companies.
Upon the completion of the acquisition, Genworth will operate a standalone subsidiary of China Oceanwide and Genworth’s senior management team will continue to lead the business from its current headquarters in Richmond, Virginia.
The Virginia Bureau of Insurance’s approval is conditional, which requires Oceanwide to conclude the merger as per terms and conditions detailed the agreement and the continued protection of, and limited access to, certain personally identifiable information held by Genworth.
The completion of the proposed merger agreement is subject to other conditions, such as clearance by the Committee on Foreign Investment in the United States (CFIUS) and approval from other regulators in the US, China and other global jurisdictions.
China Oceanwide Group chairman LU Zhiqiang said: “We are working with Genworth to complete this transaction so that we can strengthen Genworth’s financial position and the viability of its long term care business in the U.S. as well as bring Genworth’s expertise in long term care insurance to our country for the benefit of our aging population.”