New Delhi: The Competition Commission of India (CCI) has approved a proposed deal related to Aegon Religare Life Insurance Company that would see Religare Enterprises exiting the joint venture.
Under the transaction, Religare Enterprises would sell its entire holding in the life insurance joint venture while existing shareholders - Netherlands-based Aegon and Bennett, Coleman & Co Ltd (BCCL) - would hike their stakes.
Giving its green signal for the deal, the fair trade regulator said the proposed combination is not likely to have any appreciable adverse effect on competition in India.
Aegon, a global provider of life insurance, pension and asset management, operates in the Indian life insurance space through its shareholding in ARLIC.
BCCL has presence in media, print, TV and internet segments. BCCL is present in the domestic life insurance sector through its stake in ARLIC.
Currently, Aegon, BCCL, Religare and K P Corporate Solutions Ltd -- as a trustee for Aegon Religare Employee Benefits Trust - are the joint venture partners of Aegon Religare Life Insurance Company Ltd (ARLIC).
After the deal, Aegon, BCCL and K P Corporate Solutions would have 49 per cent, 48.585 per cent and 2.415 per cent stakes, respectively, in the company.
"It is observed that parties do not provide any similar or identical or substitutable products or services in India."
"...BCCL also does not have any presence in the life insurance sector in India except through its stake in ARLIC and its insignificant indirect shareholding in two insurance brokerage companies, namely SMC Insurance Brokers Pvt Ltd and AB Insurance Brokers Pvt Ltd," CCI said in its order dated July 9.
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