Four-year deal delay dims the romance of M&A

China Oceanwide Holdings

23/10/2020 01:59

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Hughes
    HONG KONG, Oct 23 (Reuters Breakingviews) - China
Oceanwide’s $2.7 bln takeover of Genworth has been postponed for
the 16th time since it was unveiled in October 2016. Blame
politics and the pandemic for the wait. Mergers that take this
long to consummate make it hard to recall the benefits they were
meant to provide.
    Full view will be published shortly.
    On Twitter https://twitter.com/JennHughes13
    
    CONTEXT NEWS
    - Genworth Financial and China Oceanwide on Oct. 1 extended
the deadline to complete their agreed merger until Nov. 30 from
Sept. 30, to finalise terms for a loan Oceanwide needs to move
forward. It is the sixteenth extension since the deal was first
announced on Oct. 23, 2016, when Oceanwide agreed to pay $2.7
billion to buy Genworth and to pump an extra $1.1 billion of
capital into the rival insurance company. The post-transaction
investment was subsequently increased.
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Press release on 16th extension    https://genworth2014.q4web.com/investors/news-releases/archive/archive/2020/Genworth-and-Oceanwide-Announce-Significant-Progress-Toward-Acquisition-Funding-Extend-Merger-Agreement/default.aspx
BUZZ Genworth Financial: Drops on extension of merger agreement
with Oceanwide     urn:newsml:reuters.com:*:nL4N2GS2CP
Worsening trade row deepens chill felt by Chinese dealmakers
seeking to do U.S. takeovers   
 D-REUTERSNEWS-T004/I244fe53079fe11e89a798c260212da65 
In new China Inc M&A push, Oceanwide strikes $3.8 billion deal
for ex-GE insurer Genworth   
 D-REUTERSNEWS-T004/I1b36ba00999f11e68808fdb28861ac77 
BREAKINGVIEWS China Oceanwide buys GE sloppy insurance seconds  
  D-REUTERSBRKVW-T001/Ia0ae7560999a11e6af1bee7b6499b3ff 
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 (Editing by Lauren Silva Laughlin and Katrina Hamlin)
 ((jennifer.hughes@thomsonreuters.com; Reuters Messaging:
jennifer.hughes.thomsonreuters.com@reuters.net))