GENWORTH Financial Inc. was given approval from a U.S. national security panel for its US$2.7 billion buyout by China Oceanwide Holdings Group Co. The Committee on Foreign Investment in the United States (CFIUS), which reviews foreign acquisitions of U.S. companies, said there are “no unresolved national security concerns with respect to the proposed transaction,” according to a statement Saturday from Genworth. The U.S. insurer has sought to assuage concerns about personal consumer information becoming more vulnerable after the deal with the China-based company. After refiling with CFIUS multiple times, the two companies agreed to use a third-party provider to help protect consumer data. Genworth chief executive officer Tom McInerney has called the China Oceanwide deal, which was announced in 2016, the “best option” for the company after it was hit by losses on its long-term-care coverage, which pays for nursing-home stays or home-health aides. “Successfully concluding the CFIUS process is a major step in our efforts to complete this transaction, which will strengthen Genworth’s financial position and allow us to bring Genworth’s insurance expertise to China,” Lu Zhiqiang, China Oceanwide’s chairman, said in the statement. The decision clears one hurdle for Genworth, but the companies still need to secure approval from some other regulators, according to the statement. (SD-Agencies) |