The Competition Commission of India (CCI) on Tuesday said it has approved Bajaj Group’s plan to acquire Allianz SE’s 26% stake in its life and general insurance ventures for a total consideration of Rs 24,180 crore, the largest deal in the country’s insurance sector.
The acquisition will raise Bajaj Group’s ownership in Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company to 100% from 74%, Bajaj Finserv had said in March. Upon the end of their 24-year partnership, Bajaj Group and Allianz intend to pursue independent growth in the country’s expanding insurance market.
As per the proposal, Bajaj Finserv, Bajaj Holdings & Investment and Jamnalal Sons would buy the 26% stake in each of the two insurance entities in phases from Allianz.
The combination also includes the proposed acquisition of a 50% stake in Bajaj Allianz Financial Distributors by Bajaj Finserv in a single tranche from Allianz. Currently, the company is a 50:50 joint venture between Bajaj Finserv and Allianz.
Separately, the antitrust regulator also approved the proposed acquisition of less than a 10% stake in Haldiram Snacks Food by Temasek Holdings through its arm Jongsong Investments Pte.
Set up in 1937 in Bikaner, Rajasthan, by Ganga Bhishen Agarwal, Haldiram became a major food snacks brand, with products being sold in over 80 countries. Haldiram Snacks Food is the combined business of the two factions of the Haldiram family in Delhi and Nagpur.
Source: Economic Times