FX.co ★ Chinese investment firm to buy US insurer for $2.7 billion

Genworth Financial Inc., the dominant operator in the field of insurance for health care in the United States, agreed to sell its business to China Oceanwide Holdings. The reason for sale was because of low interest rates and growing prices for medical services.
According to The Wall Street Journal, China Oceanwide Holdings Group is ready to pay about $ 2.7 billion for Genworth. Interestingly, China Oceanwide has actively invested in the US commercial and residential real estate over the past two years. Meanwhile, Genworth is one of the companies that most suffered from the property bubble in the United States, and consequently was weighed down by very low rates.
Currently, China Oceanwide is a major national conglomerate that invests in banking, insurance and technology.
Under the deal, China Oceanwide will pay $5.43 per Genworth’s share, while the stock of the US insurer was traded at $5.21 on Friday. The Chinese investment firm will send about $600 million to repay Genworth’s debt until 2018 and will allocate $525 million to develop the company’s business of life insurance.