CCI Clears Patanjali Bid To Buy Adar Poonawalla-Backed Magma General Insurance
Apart from Patanjali Ayurved, the entities participating in the transaction are S R Foundation, Riti Foundation, RR Foundation, Suruchi Foundation and Swati Foundation.
The Competition Commission of India cleared on Wednesday a proposal of Patanjali Ayurved Ltd. and five other entities to acquire a majority stake in Magma General Insurance Ltd.
Last month, Sanoti Properties LLP — jointly held by billionaire Adar Poonawalla and Rising Sun Holdings Pvt. — approved the sale of its insurance subsidiary, Magma General Insurance, to Patanjali and Dharampal Satyapal Group at a valuation of Rs 4,500 crore.
"The proposed combination is being notified under the green channel route in consonance with section 6(4) of the Competition Act, 2002," the CCI said in a notice.
Under the green channel route, a transaction which does not pose any risk of an appreciable adverse effect on competition is deemed to be approved on being intimated to the competition watchdog.
Apart from Patanjali Ayurved, the entities participating in the transaction are S R Foundation, Riti Foundation, RR Foundation, Suruchi Foundation and Swati Foundation.
Following the CCI approval, Patanjali will assume the role of Magma General Insurance's promoter entity. This will further diversify its portfolio, which currently focuses on healthcare and FMCG.
Pantanjali's strategic investment in Magma, coupled with its vast distribution network, will inject vital growth capital and drive deep market penetration, especially in rural areas, according to the company. The company sees significant growth potential within India's underpenetrated general insurance market.
With over 70 products across various categories, Magma offers insurance to secure all major risks in the general insurance sphere. It provides a diverse portfolio of insurance solutions, spanning retail products like motor, health, personal accident and home, to specialised commercial offerings like fire, engineering, liability and marine.
"The activities of the parties (including their affiliates) do not exhibit any horizontal overlaps, vertical relationships, or complementary linkages in any of the plausible relevant markets in India," the CCI notice said.
(With PTI inputs)
