Genworth Financial, Inc. (NYSE: GNW) hiked Monday after the company reported that the Committee on Foreign Investment in the United States has approved acquisition of the company by China Oceanwide.
The Richmond, Va.-based Genworth Financial and China Oceanwide today announced that the Committee on Foreign Investment in the United States (CFIUS) has completed its review of their proposed transaction and concluded that there are no unresolved national security concerns with respect to the proposed transaction. This satisfies one of the conditions to the closing of the proposed transaction.
The closing of the transaction remains subject to other conditions, including the receipt of required regulatory approvals in the U.S., China and other international jurisdictions. Genworth and Oceanwide are engaging with the relevant regulators regarding the pending applications.
"We are pleased that CFIUS has completed its review of our transaction and look forward to working with Oceanwide to obtain the remaining regulatory approvals needed and satisfy other conditions necessary to close the transaction as soon as possible," said Tom McInerney, president and CEO of Genworth.
Added Lu Zhiqiang, chairman of Oceanwide: "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."
Genworth Financial is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance
Shares in Genworth rocketed $1.04, or 27.2%, to $4.85.
