The biggest proposed Chinese takeover of a U.S. insurer looks like it could be a bust. Investors should steer clear of Genworth (GNW) shares as the deal may unravel in the coming months.
China Oceanwide (HHRBF) is a major Chinese conglomerate, but it has no experience in U.S. insurance. Feeling flush and mandated by Beijing to grow outside China, in 2016, China Oceanwide bid $3.8 billion to takeover and recapitalize Virginia's Genworth Financial. China would provide a cash infusion, and Genworth would teach Oceanwide best practices in insurance.
Nothing worked out as planned. U.S.-China political