Genworth Financial, a leading provider of mortgage insurance and long-term care insurance, has entered into a merger agreement with China Oceanwide Holdings Group. The deal, which was first announced in October 2016, has been subject to regulatory approval in both the United States and China. After years of delays and setbacks, the two companies finally received approval from all necessary regulatory bodies in June 2020.
Under the terms of the merger agreement, China Oceanwide will acquire all outstanding shares of Genworth for $5.43 per share in cash. The total transaction value is approximately $2.7 billion. The merger is expected to create opportunities for both companies to expand their businesses and reach new customers. Genworth will have access to China Oceanwide`s extensive network of business contacts in China, while China Oceanwide will be able to tap into Genworth`s expertise in the U.S. market.
The merger agreement has been in the works for several years, and it has faced significant challenges along the way. One of the biggest hurdles was obtaining regulatory approval from both the U.S. and Chinese governments. The deal has also faced opposition from some shareholders who believe that the $5.43 per share offer undervalues the company. Despite these challenges, however, both companies persisted in their efforts to complete the merger.
The approval of the merger by the United States and Chinese governments is a significant milestone for both companies. It paves the way for Genworth to become part of a larger, global organization with access to new markets and resources. China Oceanwide, on the other hand, will gain a foothold in the U.S. market and access to Genworth`s expertise in mortgage insurance and long-term care insurance.
In conclusion, the Genworth Oceanwide merger agreement has been a long time in the making. After facing numerous challenges and setbacks, the two companies have finally received regulatory approval from both the U.S. and Chinese governments. The merger is expected to create new opportunities for both companies and allow them to expand into new markets. As the two organizations move forward, it will be interesting to see how they leverage their combined strengths to achieve their goals.