CCI approves HDFC’s additional stake buy in HDFC ERGO General Insurance

Posted on by

the Competition Commission of India (CCI) The proposed group involving the acquisition was approved by Housing Development Finance Company Limited (HDFC) Certain additional shares in HDFC ERGO General Insurance Company Ltd (HDFC ERGO).

The proposed combination relates to HDFC’s acquisition of some additional interest in HDFC ERGO on a spot delivery basis as HDFC (after the proposed transaction) and the surviving merged entity as HDFC Bank Ltd (after the effective date of the proposed merger of, among others, HDFC into HDFC Bank) will own more of 50 per cent ownership of HDFC ERGO as per Indian Banking Regulations.

HDFC ERGO is registered with the Insurance Regulatory and Development Authority of India (IRDAI) to provide general insurance (ie non-life) products in India.

It offers a full range of general insurance products – auto, health, travel, home and electronic insurance in the retail space, and customized products such as property, rural, marine, business credit, liability and other specialty insurance in the corporate sphere.

HDFC Life Insurance

CCI has also approved the proposed merger which includes the acquisition of an additional shareholding in HDFC Life Insurance Company Ltd (HDFC Life) by HDFC.

The proposed combination relates to HDFC’s acquisition of certain additional interests in HDFC Life through one or more market purchases via stock exchanges such as HDFC (after the proposed merger) and the surviving merged entity, i.e. HDFC Bank (after the effective date of the proposed merger, among others , HDFC in HDFC Bank) will hold more than 50 per cent ownership of HDFC Life in accordance with Indian banking laws.