* As a precondition to
CFIUS clearance of the transaction,
CFIUS required that the company and the Consortium enter into a National Security Agreement with the Departments of Defense and Homeland Security.
Additional information about the
CFIUS review process can be found in the definitive proxy statement filed by Genworth with the Securities and Exchange Commission on 25 January 2017.
If members of
CFIUS are unable to come to an agreement on these issues, the President can prohibit the consummation of the deal.
CFIUS clearance was the final governmental approval condition to closing the merger.
It expands the scope of transactions subject to review by
CFIUS to include certain non-controlling investments made by foreign persons in certain U.S.
Other portions of the legislation, such as rules allowing
CFIUS to stop foreign purchases of land near military installations or ports, will be addressed later, an official said on Tuesday.
Since Trump took office,
CFIUS has scuttled about a dozen transactions, mostly from China, over concerns about risks to national security, said Bloomberg.
And several other technology deals fell apart, after
CFIUS raised concerns.
CFIUS already has a reputation for being tough on high-tech deals involving China in particular and has blocked transactions that involve sophisticated semiconductors.
For life and health insurance agents,
CFIUS may be best known as a federal agency slowing efforts by China Oceanwide Holdings Group Co.
"Despite our best efforts to work cooperatively with the US government, it has now become clear that
CFIUS will not approve this merger."
* The proposed Foreign Investment Risk Review Modernization Act (FIRRMA) updates and modernizes the procedures of the Committee on Foreign Investment in the United States (
CFIUS).
