New Delhi: South Africa-based financial services firm Sanlam Ltd has received approval of the Competition Commission of India (CCI) to acquire a 23 per cent stake each in two Shriram Group insurance firms.
The acquisition will be done through Sanlam Emerging Markets (Mauritius), a group firm of Sanlam Ltd.
According to the notice filed by Sanlam Emerging Markets (SEM), it will acquire a 23 per cent stake each in Shriram Life Insurance Company (SLIC) and Shriram General Insurance Company (SGIC) from Shriram Capital Ltd.
In this regard, the entities entered into a sale of shares agreement in February this year.
Clearing the deal, CCI - which keeps a tab on unfair business practices across sectors - said "the proposed combination is not likely to have an appreciable adverse effect on competition in India".
SEM is a subsidiary of Sanlam Life Insurance which in turn is a subsidiary of Sanlam Ltd. The firm is engaged in holding investments in businesses related to insurance, banking, and investment management.
Post-deal, the total shareholding of the SEM in Shriram Life Insurance and Shriram General Insurance will increase to 42.39 per cent and 42.99 per cent, respectively, the watchdog said in an order last month citing notice submitted by SEM.
"Since the rights enjoyed, at present, by the SEM in the targets (SLIC and SGIC) shall remain unchanged post the proposed combination, the increase in the shareholding of the SEM in the targets, post proposed combination, will not result in any change in control of the targets," the order said.
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