Brookfield Business Partners takes controlling stake in Genworth Canada in $2.4B deal
Brookfield Asset Management's Senior Managing Partner and CEO Bruce Flatt attends the company's AGM in Toronto on May 6, 2015. THE CANADIAN PRESS/Chris Young
The Canadian Press
Published Tuesday, August 13, 2019 7:34AM EDT
TORONTO -- Brookfield Business Partners has signed a deal to buy a controlling interest in Genworth MI Canada Inc. for $2.4 billion.
Under the deal, Brookfield has agreed acquire 48.9 million shares or a roughly 57 per cent interest in the business from Genworth Financial Inc. at a price of $48.86 per share.
Genworth Canada provides mortgage default insurance to Canadian residential mortgage lenders.
Genworth Financial launched a strategic review of its Canadian business earlier this summer after what it said was a "lack of transparent feedback or guidance" from regulators regarding Ottawa's review of the U.S. company's pending takeover by China Oceanwide Holdings Group Co. Ltd.
Brookfield Business Partners said it has no current intention to make an offer for the balance of the outstanding shares given the short time frame available to complete the deal.
The Brookfield deal is subject to customary approvals, including the approval by Ottawa.
Companies in this story: (TSX:MIC, TSX:BBU.UN)