HENRICO COUNTY, VA. – The insurer Genworth Financial pulled the plug on its long-belated takeover by a Chinese company.
The Richmond, Virginia-based mortgage and long-term care insurance provider announced Tuesday that it had exercised its right to terminate its contract with Beijing-based China Oceanwide Holdings Group Co.
The deal was first announced in 2016. China Oceanwide agreed to buy Genworth for around $ 2.7 billion. It was originally supposed to close the following year.
However, regulatory hurdles and funding problems repeatedly delayed the marriage, which was made even more complicated last year by the global coronavirus pandemic.
The Genworth board of directors concluded that Oceanwide will not be able to complete the proposed transaction in a timely manner and that more clarity is needed now about Genworth’s future in order for the company to execute on its plans to maximize shareholder value. Executive Chairman said in a statement.
These plans include a potential partial IPO of Genworth’s US mortgage insurance business. It was also advised that it and China Oceanwide will continue to consider working together on ways to provide long-term care insurance and other products in China.
Genworth Financial Inc.’s shares fell around 1% on Tuesday following the announcement of the signing of the deal in after-market trading.