Genworth and China Oceanwide Holdings Group have withdrawn and re-filed their joint voluntary notice with the Committee on Foreign Investment in the United States (CFIUS) on their proposed acquisition.

It will provide CFIUS with more time to review and discuss the proposed acquisition of Genworth by China Oceanwide.

CFIUS has agreed to proceed directly to a 45-day investigation period, after a one-day review period.

CFIUS is a governmental inter-agency committee that reviews transactions such as mergers and acquisitions which could result in a foreign person or business controlling a US business to check whether or not the deal will have an impact on national security.

Genworth stated that the move has been taken, as CFIUS was concerned about the security of its customer data.

Genworth president and CEO Tom McInerney said: "The refiling provides additional time for us to continue ongoing, productive conversations with CFIUS about the additional data security risk mitigation proposal that we presented to CFIUS in February.

"We believe our mitigation plan, which involves a US third-party service provider, offers an effective solution for safeguarding the personal data of our policyholders."  

The companies have also stated that the refiling does not necessarily guarantee that the deal get approval. In addition to receiving approval from CFIUS, it is necessary to receive approvals from the concerned regulatory authorities in the US and China and other international jurisdictions.

Genworth stated that it is fully committed to closing the transaction because it is the best option for its shareholders.

With this transaction, it will remain as a viable and strengthened competitor in the long term care and mortgage insurance industries, the company noted.

China Oceanwide Group chairman LU Zhiqiang said: "We also remain committed to this transaction, which will enable us to bring Genworth's expertise in long term care and mortgage insurance to China as well as bring financial stability to Genworth and its businesses in the US"

Back in October, 2016, China Oceanwide made a proposal to acquire Genworth for $2.7bn. As per the transaction, each shareholder in Genworth would receive $5.43 per share.

With the proceeds from the transaction, Genworth planned to reduce its debt by$1.1bn.

Image: Genworth’s office building in Lynchburg, Virginia USA. Photo: Courtesy of Genworth Financial, Inc.