CCI Clears Zurich Insurance's Stake Purchase In Kotak Mahindra General Insurance

The Competition Commission of India (CCI) on Tuesday said it has approved Zurich Insurance Company's proposed 70% stake purchase in Kotak Mahindra General Insurance Company.

Zurich Insurance Company is a wholly-owned subsidiary of Zurich Insurance Group Ltd.

The proposed transaction involves an acquisition of a majority stake in the Kotak Mahindra General Insurance Company by the Zurich Insurance Company from Kotak Mahindra Bank Ltd, according to a release.

Pursuant to the transaction, Zurich Insurance Company will have a 51% stake in Kotak Mahindra General Insurance.

In addition, CCI also cleared Zurich Insurance Company's proposal to acquire an additional 19% stake in Kotak Mahindra General Insurance.

Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.