Genworth Financial Inc. may need to again extend the closing of its long-delayed acquisition by a China-based firm, at least in part because of disruptions caused by the coronavirus.
The Henrico County-based insurance company said Monday that it was discussing a “short extension” of its merger agreement with China Oceanwide Holdings Group Co. Ltd. beyond the current deadline of March 31.
The deal for China Oceanwide to acquire Genworth for $5.43 a share was announced in October 2016, and Genworth shareholders approved the acquisition in March 2017.
Since then, however, the $2.7 billion deal has been delayed 13 times as Genworth has sought approval by numerous state, national and international regulatory agencies.
“Genworth and Oceanwide remain committed to the transaction and continue to work towards closing as soon as possible,” Genworth announced Monday.
Genworth said it is submitting supplemental information on the deal to state insurance regulators in New York, Virginia and Delaware, after the companies agreed with New York regulators to make a $100 million capital contribution to Genworth’s New York-domiciled life insurance subsidiary at the closing of the proposed acquisition.
Genworth, which sells home mortgage and long-term care insurance, said it is working on responses to “limited requests for additional information” from state regulators.
Submitting all the information and the review process will take more time than ordinary, the company said, “given the ongoing challenges due to the coronavirus pandemic, including the remote work policies that have been put into effect for the parties and regulators involved.”
Genworth has about 3,200 employees, including 1,000 in the Richmond region. On March 12, the company shifted its employees to working remotely from home.