Genworth completes $1.8B sale of Canadian unit
The mortgage insurance deal is part of its effort in gain approval for China Oceanwide takeover.
Henrico County-based Genworth Financial Inc. has completed the sale of the majority stake in its Canadian mortgage insurance company.
The sale of Genworth MI Canada Inc. to Brookfield Business Partners is part of Genworth’s effort to clear the way for its long-delayed takeover by China Oceanwide Holdings Group Co. Ltd.
Brookfield paid $48.86 Canadian dollars (CAD) per share, for total of CAD $2.4 billion (U.S. $1.8 billion).
Genworth is a Fortune 500 insurance holding company. In 2016, it announced a proposed $2.7 billion takeover by China Oceanwide. The deadline for its completion has been pushed back repeatedly because of review by government regulators. The latest extension sets the deadline for Dec. 31.
The Committee on Foreign Investment has approved the transaction, but Canadian approval is still pending. Genworth announced in August that it had agreed to sell its Canadian mortgage insurance unit to make the China Oceanwide in response to discussions with regulators in Canada.