The Insurance Regulatory and Development Authority of India (IRDAI) has given its formal approval to acquisition of up to 12% stake in Max Life Insurance company ltd by Axis entities(Axis Bank ltd and its subsidiaries, Axis Capital Ltd and Axis Securities Ltd ).
Note: In January 2021 CCI gave approval to this deal. The total premium generated through this deal has aggregated to over Rs. 40,000 crore.
Proposed Transaction
i.Under the proposed transaction, Axis entities can acquire up to 19% stake in Max Life, of which Axis bank will acquire up to 9% in Max Life.
ii.While, Axis Capital and Axis Securities will acquire up to 3% of the share capital of Max Life.
iii.In addition to this, Axis entities have the right to acquire an additional stake of up to 7% in Max Life, in one or more tranches.
Background:
i.Axis entities agreed into a revised agreement with Max Financial Services (MFS) Ltd to acquire up to 19% of the equity share capital of Max Life Insurance Co Ltd (Revised Agreements) on october 30, 2020.
ii.Prior to this, Axis bank was to acquire upto 17% in Max Life Insurance.
Recent Related News:
On November 11, 2020 Insurance Regulatory and Development Authority of India(IRDAI) gave its final approval for the merger of HDFC ERGO Health Insurance (formerly Apollo Munich Health Insurance Co Ltd) with HDFC ERGO General Insurance Co Ltd (HDFC ERGO).
About Max Life Insurance Company Ltd:
Headquarters– Gurugram, Haryana
Managing Director(MD) and Chief Executive Officer(CEO)– Prashant Tripathy
About Axis Bank Ltd:
Headquarters– Mumbai, Maharashtra
MD and CEO– Amitabh Chaudhry
Tagline– Badhti Ka naam Zindagi
Founded– 1993
