Henrico County-based Genworth Financial Inc. announced Monday that it does not intend to exercise its right to terminate the $2.7 billion merger agreement with China-based Oceanwide Holdings Group Co. Ltd. as of Aug. 31.
According to a statement from Genworth, the insurance company’s board of directors and management team determined that Oceanwide provided satisfactory information regarding its funding plan for the $2.7 billion purchase.
“Over the past few months, [Genworth President and CEO Tom McInerney] and I have been in regular discussions with China Oceanwide with respect to their efforts to obtain financing for the transaction,” James Riepe, non-executive chairman of the Genworth board, said in a statement. “Based on these discussions and the information provided by Oceanwide, we believe the funding is progressing well and that Oceanwide is working to close the transaction by Sept. 30, 2020. Therefore, the board determined not to exercise our right to terminate the merger agreement at this time.”