Cfius Proves It Is Not A One: way bet after all

China Oceanwide Holdings

11/06/2018 11:06

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Quentin Webb
    HONG KONG, June 11 (Reuters Breakingviews) - The U.S.
security panel cleared China Oceanwide’s $2.7 bln takeover of
Genworth, after nearly two years of waiting and as Washington
and Beijing feud over trade. The insurer’s shares carried a 30
pct discount, showing just how hard it is to price regulatory
risk right now.

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    CONTEXT NEWS
    - Genworth Financial said on June 9 that its takeover by
China Oceanwide had won approval from the Committee on Foreign
Investment in the United States. To secure the panel’s backing,
the New York-listed insurer pledged to use a U.S.-based,
third-party company to manage policyholders’ personal data.
    - The deal, first announced in October 2016, still requires
approval from regulators in the United States, China and
elsewhere.
    - China Oceanwide agreed to buy Genworth for $5.43 a share
in cash, or about $2.7 billion in total. Genworth shares closed
at $3.81 on June 8.
    - For previous columns by the author, Reuters customers can
click on  WEBB/  
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Genworth statement    https://www.prnewswire.com/news-releases/committee-on-foreign-investment-in-the-united-states-completes-review-of-proposed-china-oceanwide-and-genworth-financial-transaction-300663704.html
 
U.S. security panel approves Oceanwide purchase of Genworth   
 urn:newsml:reuters.com:*:nL2N1TB0BE
BREAKINGVIEWS-Death of Broadcom’s bid leaves worrying fog   
 urn:newsml:reuters.com:*:nL3N1QV025
BREAKINGVIEWS-Ant’s MoneyGram fail becomes America First symbol 
   urn:newsml:reuters.com:*:nL4N1OY03T
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 (Editing by Jeffrey Goldfarb, Sharon Lam and Bob Cervi)
 ((quentin.webb@thomsonreuters.com; Reuters
Messaging:quentin.webb.thomsonreuters.com@reuters.net))