Genworth Financial Inc. and China Oceanwide Holdings Group Co. Ltd. have agreed to yet again extend the closing date for their merger.
The companies are moving the merger's closing deadline to April 30 from March 15 in consideration of pending regulatory reviews. The merger still needs approvals from Canadian regulators. Approval by the U.S. Financial Industry Regulatory Authority also remains outstanding, but FINRA rules allow the transaction to close before the regulator's approval is obtained. Additionally, China Oceanwide will have to receive clearance in China for currency conversion and the transfer of funds.
Should closing of the transaction extend past March 31, timing of the initial tranche of both the previously announced $1.5 billion China Oceanwide post-closing capital plan and the $175 million post-closing capital commitment to Genworth Life Insurance Co. from Genworth Holdings Inc. would need to be adjusted, according to a company release. Such adjustment will be discussed with applicable regulators and Fannie Mae and Freddie Mac.