Is Genworth Financial Stock a Buy?
There's been a lot happening at Genworth Financial (NYSE: GNW), but investors may be wondering just where the company is headed amid all the activity. The Richmond-based company, which provides mortgage and long-term care insurance products, is currently involved in a major acquisition that has dragged on for years.
In October 2016, China Oceanwide Holdings Group struck a deal to acquire Genworth for $2.7 billion. Genworth would be a stand-alone subsidiary, and the deal was slated to close in mid-2017. More than two years later, it still hasn't. Last month, the two parties agreed to a 13th waiver that extends the time in which they can agree upon a closing date after receiving all the required regulatory approvals. The previous waiver expired Dec. 31; the new one gives the parties until March 31. The extension gives regulators additional time to review the deal, including Genworth's recent sale of Genworth Canada. The company announced last August that it agreed to sell its Genworth MI Canada subsidiary to Brookfield Business Partners. Oceanwide signed off on the sale.
But now, some regulatory bodies -- including the New York Department of Financial Services, as well as Fannie Mae and Freddie Mac -- must reapprove it as past approvals expired. Other regulators need to review it in light of the Genworth Canada disposition.
Source Fool.com
