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Forced into a corner, Genworth Financial has come to the conclusion that it has “no choice” but to consider selling its Canadian arm.
The US-based mortgage insurer said in a statement earlier this week that it will mull the sale of its regional operations due to the “absence of any substantive progress” in talks with Canadian regulators over the review of Genworth’s pending takeover by China Oceanwide Holdings Group.
Genworth also said that it has agreed with Oceanwide to “consider strategic alternatives” for Genworth MI Canada.
In a statement, Genworth CEO Tom McInerney called Genworth MI Canada one of the company’s “top-performing businesses.”
The Office of the Superintendent of Financial Institutions (OSFI) has issued its own statement in response, saying that it is continuing its review of Genworth’s application. The agency is also working with the Department of Finance and Public Safety Canada over the review.
“While there is no specific time limit on the assessment of applications, OSFI endeavours to complete all application assessments as quickly as possible,” a spokesperson told The Canadian Press in a recent email statement.
The Department of Finance has also confirmed that “the examination of this transaction is still ongoing.”
“There is a rigorous approval process for changes in ownership of federal financial institutions... The assessment of each application will depend on the specific facts and circumstances,” an email from the department read.
Both Genworth and Oceanwide have agreed to extend their merger agreement, from June 30 to November 20, 2019.
Read more: Regulator gives go ahead to Genworth deal
While Canadian regulators continue to review the Genworth-Oceanwide deal, the New York State Department of Financial Services already gave the planned transaction the green light in January this year.
