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Chinese takeover of Genworth parent clears security hurdle

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China Oceanwide Holdings’ purchase of US-based Genworth Financial, the parent of Genworth Mortgage Insurance Australia, has passed a key security review.

The US Committee on Foreign Investment found no “unresolved national security concerns” regarding the $US2.7 billion ($3.6 billion) deal, announced in 2016.

“We are pleased [the committee] 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,” Genworth CEO and President Tom McInerney said.

The deal still needs regulatory approval in the US, China and other jurisdictions.

Genworth Financial has a 52% stake in Genworth Mortgage Insurance Australia.