Competition Commission of India (CCI) approved private lender HDFC Bank's acquisition of 4.99 per cent shareholding in HDFC ERGO General Insurance Company.
HDFC ERGO General Insurance Company is a joint venture between HDFC and European insurer ERGO International AG. The venture provides general insurance products such as motor insurance, travel insurance, health insurance and personal accident insurance in the retail space. Other than that, they provide property, marine and liability insurance in the corporate space.
Private lender HDFC Bank had stated in June that its board had given the approval to acquire more than 3.55 crore shares in the joint venture for Rs 1,906 crore from the parent company Housing Development Finance Corporation (HDFC).
HDFC is the promoter and related party of the bank.
The proposed combination will enable the lender to participate in the growth opportunity of HDFC ERGO General Insurance and create long-term value for its shareholders, as per a combination notice filed with the regulator.
(With inputs from PTI)