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Genworth, China Oceanwide refile application with foreign investment regulator

Genworth Financial Inc. and China Oceanwide Holdings Group Co. Ltd. have refiled their joint application with the Committee on Foreign Investment in the U.S. as it relates to their ongoing acquisition.

If the agency accepts the notice, it would mark a new 30-day review period, followed by another 45-day investigation period. The companies have also provided CFIUS with a data security risk mitigation proposal involving a third-party service provider based in the U.S.

The refiling marks another step for the still-pending deal, which was originally announced in October 2016. In late November 2017, the companies extended their merger agreement's deadline to April 1 from Nov. 30, 2017, as they are still working to gain regulatory approvals from a handful of agencies in the U.S. and China, as well as other international jurisdictions.

The companies have also continued to work with the Delaware Department of Insurance, which has yet to approve the agreement. The review process's delay has come from a "difference in opinion of the fair market value for Genworth Life & Annuity Insurance Co.," which has to be agreed upon for the unstacking transaction to be completed, Genworth said.

Genworth also has decided to pursue a secured debt transaction related to its about $600 million of debt set to mature in May 2018. The company said more details on the debt transaction will be released in the "near future."

The company is also "continuously evaluating the strategic alternatives [it] may need to exercise to insulate [its] U.S. mortgage insurance business from continued ratings pressure," Genworth President and CEO Tom McInerney said in a statement.