New Delhi, Fair trade regulator CCI on Tuesday cleared the proposal of Prudential Corporation Holdings, an arm of UK-based financial giant Prudential plc, to acquire a stake in Bharti Life Insurance Company Ltd.
"The proposed combination envisages the acquisition of certain equity shareholding in Bharti Life Insurance Company Ltd (Target) by Prudential Corporation Holdings Ltd (Acquirer)," the Competition Commission of India (CCI) said in a release.
Prudential Corporation Holdings acts as the holding company of the acquirer Group's insurance and asset management operations in Asia and provides management and support to its Asia and Africa business operations, while Bharti Life Insurance is an IRDAI-licensed insurer.
"CCI approves acquisition of certain equity shareholding in Bharti Life Insurance Company Limited by Prudential Corporation Holdings Limited," the regulator said in a post on X.
In May this year, UK-based Prudential plc announced that it would acquire a majority 75 per cent stake in Bharti Life Insurance for Rs 3,500 crore from Bharti Life Ventures Pvt Ltd and 360 ONE Asset Management.
Prudential currently holds around 22 per cent stake in its life insurance venture with ICICI Bank. With the proposed acquisition, it will need to reduce its holding in the existing venture to meet regulatory requirements.
The transaction involves an initial cash consideration of Rs 3,500 crore (about USD 389 million) payable on completion, Prudential Plc had said earlier.
Post completion of the transaction, Prudential's Indian operations will comprise majority-owned Bharti Life Insurance Company and Prudential HCL Health Insurance Ltd. Besides minority stakes in two listed entities, namely 35 per cent of ICICI Prudential Asset Management Company Ltd and 22 per cent in ICICI Prudential Life Insurance Company.
As part of the transaction, Bharti Life will also look into securing strategic distribution agreements with Bharti Airtel and 360 ONE, it added.
Deals beyond a certain threshold require approval from the regulator, which keeps a watch on unfair business practices as well as promotes fair competition in the marketplace.
