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Genworth, China Oceanwide again extend merger agreement deadline to July 1

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Genworth, China Oceanwide again extend merger agreement deadline to July 1

Genworth Financial Inc. and China Oceanwide Holdings Group Co. Ltd. have agreed to again extend their merger agreement's deadline, this time to July 1.

The agreement, which had a previous deadline of April 1, was extended so the companies could allow for additional regulatory reviews of the merger agreement. The companies' directors can terminate the agreement any time before July 1, if they are notified that the Committee on Foreign Investment in the United States is planning to recommend to President Donald Trump that the potential deal be suspended or blocked.

The agreement did receive regulatory approval from Australian officials, which Genworth President, CEO and director Tom McInerney said in a statement is an "important step" for the agreement. The pending transaction still needs to gain regulatory approvals in the U.S., China and other international jurisdictions. The agreement has been approved by regulators in Virginia, North Carolina, South Carolina and Vermont.

"Genworth and Oceanwide continue to be actively engaged with regulators who are reviewing our transaction in the remaining jurisdictions that must approve the transaction," McInerney said in a statement.

The companies' most recent submission to CFIUS included "meaningful additions" to their approach to cybersecurity and the protection of policyholder data, McInerney said.

If the deal does not close by the May 22 maturity date of Genworth's 6.515% senior unsecured notes, Genworth plans to use recently completed term loan proceeds and some level of holding company cash to retire the notes. The companies are also discussing other options for reducing the debt, subject to consummation of the merger.