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IRDAI approves ICICI Lombard acquisition of Bharti Axa General

Chennai, Nov 27 (IANS) The Insurance Regulatory and Development Authority of India (IRDAI), on Friday approved, in principle, the acquisition of the non-life insurance business of Bharti Axa General Insurance Company Ltd by ICICI Lombard General Insurance Company Ltd.In a statement ICICI Lombard said it is progressing applications for receipt of requisite approval from other regulators concerned for the transaction.Upon closing of the proposed transaction, the consolidated entity will have a market share of about 8.7 per cent on proforma basis in the non-life business.The proposed transaction is expected to result in value creation for all stakeholders through meaningful revenue and operational synergies. Recently, the Competition Commission of India (CCI) gave its approval for the deal.Based on the share exchange ratio recommended by the independent valuers and accepted by the respective boards of ICICI Lombard and Bharti AXA, the shareholders of Bharti AXA shall receive two shares of ICICI Lombard for every 115 shares of Bharti AXA held by them as on the date on which the scheme of arrangement is approved by the board of directors of ICICI Lombard and Bharti AXA, according to a joint press statement issued by both the companies in August.Bharti AXA General Insurance is a joint venture between Bharti Enterprises with 51 per cent stake and French insurer AXA with 49 per cent stake. Both Bharti Enterprises and AXA will exit their non-life insurance businesses once all regulatory, administrative and legal approvals are in place.
--IANS vj/vd
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