The Competition Commission of India (CCI) has given a nod to Zurich Insurance Company Ltd. to acquire a 70% stake in Kotak Mahindra General Insurance Company Limited. The proposed combination involves an acquisition of a majority stake in Kotak Mahindra General Insurance by the acquirer from Kotak Mahindra Bank Limited, according to a PIB release.
“Pursuant to the Proposed Combination, the Acquirer will acquire a 51% stake in Target (through a combination of fresh growth capital and share purchase). In addition to the above, the Acquirer will also acquire an additional stake of up to 19% in the Target, over a period of time,” CCI further informed through a release.
Zurich Insurance is a wholly owned subsidiary of Zurich Insurance Group Ltd. (Zurich Insurance Group) and is a multi-line insurer serving people and businesses in more than 200 countries and territories. The company as part of the Zurich group has about 60,000 employees and is headquartered in Zurich, Switzerland.
The acquirer- Zurich Insurance Company Ltd. is the principal operating insurance company of the Zurich Insurance Group. Besides being an insurance company, it also acts as the holding company of many subsidiaries and other affiliates of the Zurich Insurance Group except for the Zurich Insurance Group’s property loans and banking activities.
Kotak Mahindra General Insurance Company is engaged in the business of providing a wide range of general insurance policies such as motor vehicle insurance, home and property insurance, commercial and health insurance. It offers a range of products such as liability insurance, extended warranty insurance, health insurance plans such as hospital cash, health indemnity policy, benefit policy and group insurance plans.