Tag: CCI

CCI approves HDFC Life’s 100 per cent acquisition of Exide Life Insurance

Banking & Finance

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The Competition Commission of India (CCI) has approved HDFC Life Insurance’s acquisition of 100 per cent shareholding in Exide Life Insurance, a unit of battery manufacturer Exide Industries.

It may be recalled that HDFC Life had in early September announced that it would acquire the entire share capital of Exide Life Insurance for a total consideration of ₹6,687 crore. This deal is expected to help HDFC Life strengthen its presence in South India, a region where Exide Life has a strong foothold.

“Commission approves acquisition of 100 per cent equity share capital of Exide Life Insurance Company Limited by HDFC Life Insurance Company Limited and the subsequent merger of Exide Life with HDFC Life,” CCI tweeted on Tuesday evening.

The proposed combination involves acquisition of fully paid-up equity shares, representing 100 per cent of target by the Acquirer from Exide Industries Limited.

After completion of the share acquisition, Exide Life (which will be a wholly owned subsidiary of HDFC Life) is proposed to be merged with HDFC Life.

HDFC Life is India’s most valuable private life insurer. It offers a range of individual and group life insurance solutions including participating, non-participating and unit linked insurance products.

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CCI nod for HDFC Bank’s stake buy in HDFC ERGO

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The Competition Commission of India (CCI) has approved the acquisition of 4.99 per cent shareholding in HDFC ERGO General Insurance Company (HDFC ERGO) by HDFC Bank.

It maybe recalled that HDFC Bank had in June said that its Board had given approval to buy more than 3.55 crore shares in group firm HDFC ERGO General Insurance Company for over ₹1,906 crore from the parent company Housing Development Finance Corporation (HDFC).

“Commission approves acquisition of 4.99 per cent of the outstanding equity share capital of HDFC ERGO General Insurance Company by HDFC Bank,” said a tweet by the CCI.

Meanwhile, an official release said that the Acquirer is a public listed banking company registered with the Reserve Bank of India, which provides a wide range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side.

As a part of the retail banking segment, the acquirer also engages in the distribution of life and general/non-life insurance products.

The Target is a joint venture between HDFC and ERGO International AG and is engaged in the business of general/non-life insurance in India and offers a complete range of general/non-life insurance products, the release added.

Parexel International

Meanwhile, the CCI has also approved the acquisition of Parexel International Corporation by Phoenix Parentco, Inc.

The proposed combination envisages acquisition of 100 per cent of the equity shareholding of Parexel International Corporation (Target) by Phoenix Parentco, Inc. (Acquirer). The Acquirer is jointly controlled by EQT Fund Management S.à r.l. (EQT) and the Goldman Sachs Group, Inc. (Goldman Sachs).

The Target is headquartered in Durham, USA. It provides biopharmaceutical outsourcing services to biopharmaceutical companies. The global activities of Target can be categorised into broad segments viz. clinical solutions and consulting, the release added.

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CCI green signals Carlyle Group-led ₹4,000 cr investment in PNB Housing

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The Competition Commission of India (CCI) has approved the Carlyle Group-led ₹4,000 crore equity investment transaction in PNB Housing Finance Ltd ( PNBHFL) even as the Securities and Appellate Tribunal (SAT) is yet to pronounce its verdict on the valuation controversy that the deal ran into recently.

Giving its “deemed approval” to the green channel notice on the combination —which involves Carlyle Group controlled Pluto Investments S.a.r.l and Salisbury Investments (Aditya Puri’s family investment vehicle) acquiring upto 56.29% stake (assuming full tendering and acceptance in the open offer), the competition watchdog CCI noted that the proposed combination raises no risk of any appreciable adverse effect on competition under the competition law.

Under the deal announced on May 31, Carlyle Group alongside other investors were to infuse ₹4,000 crore capital into PNBHFL through preferential allotment of equity shares and warrants at ₹390 per share. However, this deal ran into rough weather after SEBI intervened and asked PNBHFL not to go ahead with the deal until the Housing Finance company undertakes valuation of its shares by an independent agency.

PNBHFL later preferred an appeal before the SAT, which has reserved its order.

As part of the deal, Pluto Investments had agreed to invest upto ₹3,185 crore. The proposed Carlyle-led transaction will trigger a mandatory open offer by Pluto Investments S.a.r.l. for the purchase of up to 26 per cent equity shares of PNBHFL from public shareholders.

On Wednesday, shares of PNBHFL closed 5 per cent higher at ₹717.85 at National Stock Exchange.

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CCI nod for Axis Bank stake buy in Max Life Insurance

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Competition Commission of India (CCI) has approved the stake acquisition in Max Life Insurance Company by Axis Bank, Axis Capital and Axis Securities.

Axis Bank had sought CCI nod to acquire upto 20 per cent stake in Max Life in a deal also involving stake sale to the bank’s subsidiaries Axis Capital and Axis Securities.

It maybe recalled that Axis Bank had to revise its agreement on stake buy in Max Life Insurance as the Reserve Bank of India had rejected this bank’s earlier proposal to directly buy 17 per cent in Max Life Insurance.

As per the combination notice filed with CCI , the shareholding of Axis Bank in Max Life will increase from about 1 per cent to approximately 9.9 per cent.

Also read: Insurance awareness, ownership show progress in Covid times: Max Life’s Survey

Also, Axis Capital and Axis Securities will acquire 2 per cent and 1 per cent, respectively, shareholding in Max Life. Axis entities will also have a right to acquire an additional stake of up to 7 per cent in Max Life, in one or more tranches, taking their overall stake to 19.99 per cent.

“Commission approves acquisition of the stake in Max Life Insurance Company by Axis Bank, Axis Capital and Axis Securities,” the competition watchdog said in a tweet.

In December last year, Max Financial Services Limited (MFSL), the parent company of Max Life Insurance, completed a swap of Mitsui Sumitomo Insurance Company’s (MSI) 20.57 per cent stake in Max Life Insurance with 21.87 per cent stake in MFSL.

Post this swap, MFSL’s stake in Max Life effectively increased to 93.10 per cent from 72.5 per cent held earlier.

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