The Competition Commission of India (CCI) has approved the proposed combination involving acquisition by Housing Development Finance Corporation Ltd (HDFC) of certain additional shareholding of HDFC ERGO General Insurance Company Ltd (HDFC ERGO).
The proposed combination pertains to the acquisition by HDFC of certain additional shareholding of HDFC ERGO on a spot delivery basis such that HDFC (after the proposed transaction) and the surviving amalgamated entity i.e. HDFC Bank Ltd (after the effective date of the proposed amalgamation of, inter alia, HDFC into HDFC Bank) will hold over 50 per cent of the shareholding of HDFC ERGO in compliance with Indian banking laws.
HDFC ERGO is registered with the Insurance Regulatory and Development Authority of India (IRDAI) for providing general insurance (i.e. non-life insurance) products in India.
It offers a complete range of general insurance products — motor, health, travel, home and cyber insurance in the retail space and customised products like property, rural, marine, trade credit, liability and other specialised insurance in the corporate space.
HDFC Life insurance
The CCI has also approved the proposed combination involving acquisition of additional shareholding of HDFC Life Insurance Company Ltd(HDFC Life) by HDFC.
The proposed combination pertains to the acquisition by HDFC of certain additional shareholding of HDFC Life through one or more on-market purchases over stock exchanges such that HDFC (after the Proposed Combination) and the surviving amalgamated entity i.e. HDFC Bank (after the effective date of the proposed amalgamation of, inter alia, HDFC into HDFC Bank) will hold over 50 per cent of the shareholding of HDFC Life in compliance with Indian banking laws.