Why Shares of Genworth Financial Are Climbing Today
Shares of Genworth Financial (NYSE: GNW) traded up 14% on Tuesday morning after the insurance giant announced the sale of its Canadian unit for 2.4 billion Canadian dollars ($1.8 billion). The divestiture is the latest chapter in Genworth's long-running quest to be acquired by a Chinese suitor and could simplify the path for a deal to eventually get done.
In October 2016, China Oceanwide Holdings announced plans to acquire Genworth, a one-time subsidiary of General Electric, for $2.7 billion, but regulatory hurdles have complicated matters in the years since. The proposed deal has been extended 12 times so far while awaiting regulatory approval, with the latest extension announced Tuesday.
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Source Fool.com
