The CCI approved Bajaj Group's proposed acquisition of a 26 percent stake in each of its insurance joint ventures, Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance, from its partner Allianz SE for a total of Rs 24,180 crore.
Key Highlights:
- CCI has sanctioned Bajaj Group's acquisition of Allianz SE's 26% stake in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance, valued at ₹24,180 crore.
- Following the acquisition, Bajaj Group's stake in both insurance ventures increases to 100%, ending a 24-year joint venture with Allianz.
As per the regulator, the plan is for BFS, BHIL and JSPL to buy 26 percent of the equity in BALIC and BAGIC from Allianz SE.
In addition to other services, BFS supports consumer finance, finance for small businesses, housing finance and general insurance. JSPL is a private company founded under the 1913 Companies Act.
The Reserve Bank of India classified BHIL as an investment and credit company and BALIC and BAGIC are both registered as joint ventures between Bajaj Finserv and Allianz SE.
According to the competition watchdog, BFS will become the new owner of half of BAFDL’s paid-up share capital that Allianz is giving up.
CCI has approved the deal where Bajaj Finserv, Bajaj Holdings & Investment and Jamnalal Sons will grab shares in Bajaj Allianz Life Insurance Company, Bajaj Allianz General Insurance Company and Bajaj Allianz Financial Distributors..
Bajaj Finserv said earlier this year that it had reached two agreements to purchase a 26% share in Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company from Allianz SE of Germany.
Allianz’s two-decade involvement in the joint venture comes to an end with the execution of the SPAs.
As a result of the purchase, the Bajaj Group will own BAGIC and BALIC outright, compared to its current 74% share.
For a 26 percent stake in BAGIC and BALIC, the agreed-upon consideration is Rs 13,780 crore and Rs 10,400 crore, respectively.
In a separate statement on Tuesday, CCI approved the proposed acquisition of Batlivala & Karani Securities Pvt Ltd and Batlivala & Karani Finserv Pvt Ltd by asset and wealth management firm 360 ONE.
Batlivala & Karani Securities specializes in investment banking, research analysis, equity broking, and financial product distribution, whereas Batlivala & Karani Finserv distributes financial products.
Deals that exceed a certain threshold must be approved by the regulatory body in order to stop unfair business practices and promote fair competition in the marketplace.
