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Genworth, China Oceanwide extend merger agreement deadline again

Genworth Financial Inc. and China Oceanwide Holdings Group Co. Ltd. have once again extended their merger agreement's deadline.

The sixth waiver and agreement, disclosed Aug. 14, extends the previous deadline of Aug. 15 to Dec. 1 to provide additional time to complete the regulatory review process.

The agreement also waives the unstacking of Genworth Life & Annuity Insurance Co. from Genworth Life Insurance Co., as well as related covenants, including China Oceanwide's obligation to contribute $525 million to facilitate the unstacking.

The latest agreement also waives China Oceanwide's obligation to contribute $600 million to Genworth to repay the company's debt obligations due May 2018, which were retired with the proceeds from a term loan and cash on hand.

Separately, China Oceanwide agreed to a capital investment plan under which it will contribute $1.5 billion to Genworth over time after the deal closes, with the final amounts of the plan to be contributed by March 31, 2020. The companies said this contribution would be used to further improve Genworth's financial stability, which may include retiring Genworth's debt due in 2020 and 2021 or enabling future growth opportunities.

The merger is still subject to regulatory approvals in the U.S., China and other international jurisdictions, plus other closing conditions.