Why Genworth Financial Stock Plummeted Today
Shares of Genworth Financial (NYSE: GNW) have plummeted today, down by 26% as of 12:05 p.m. EST, after the company provided an update regarding its transaction with China Oceanwide. The pair have been trying to merge since 2016 and have run into numerous delays.
In late November, the companies had secured an extension for the deal until Dec. 31, but Genworth and Oceanwide have decided not to extend the deadline further due to "uncertainty around the completion and timing of the remaining steps required to close the transaction." Oceanwide noted that it has still not finalized financing terms from Hony Capital, and the COVID-19 pandemic and related restrictions also continue to contribute to uncertainty.
While the merger agreement is still in effect, either party can terminate the agreement at any time. Oceanwide will still work toward closing the acquisition.
Source Fool.com
