Bajaj Group get CCI’s nod to acquire Allianz’s 26 pc stake in insurance JVs for Rs 24,180 cr

Fair trade regulator CCI on Tuesday cleared Bajaj Group’s proposed acquisition of a 26 per cent stake each in its insurance joint ventures, Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance, from its partner Allianz SE for a total of Rs 24,180 crore. “The proposed combination involves acquisition of 26 per cent paid-up equity share capital of Bajaj Allianz Life Insurance Company Ltd (BALIC) and Bajaj Allianz General Insurance Company Ltd (BAGIC) by Bajaj Finserv Ltd (BFS), Bajaj Holdings & Investment Ltd (BHIL) and Jamnalal Sons Pvt Ltd (JSPL) from Allianz SE,” the regulator said in a release.

BFS is engaged in the provision of financial services, including consumer and SME finance, housing finance, general insurance, and JSPL is a private limited company incorporated under the provisions of the Companies Act, 1913.

BHIL is a RBI-registered as a non-banking financial company – investment and credit company and BALIC and BAGIC are joint ventures between Bajaj Finserv and Allianz, where BFS currently holds 74 per cent stake each and the rest with Allianz SE.

The competition watchdog also granted its nod for the proposed combination involving the acquisition of 50 per cent paid-up equity share capital of Bajaj Allianz Financial Distributors Limited (BAFDL) by BFS from Allianz.

BAFDL is a 50:50 joint venture between BFS and Allianz.

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“CCI approves the proposed combination involving acquisition of stake in Bajaj Allianz Life Insurance Company, Bajaj Allianz General Insurance Company and Bajaj Allianz Financial Distributors by Bajaj Finserv, Bajaj Holdings & Investment and Jamnalal Sons,” the Competition Commission of India (CCI) said in a post on X. In March this year, financial services firm Bajaj Finserv announced that it has signed share purchase agreements for the acquisition of a 26 per cent stake owned by Allianz SE of Germany in its insurance businesses Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company. The execution of the Share Purchase Agreements (SPAs) marks the end of a 24-year relationship and also the culmination of constructive and amicable discussions to ensure a seamless transfer of the stake of Allianz.

The acquisition of Allianz SE’s stake will increase Bajaj Group’s ownership in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC) to 100 per cent from the current 74 per cent.

The agreed consideration for 26 per cent stake in BAGIC and BALIC is Rs 13,780 crore and Rs 10,400 crore, respectively.

In a separate release on Tuesday, CCI cleared the proposed combination involving acquisition of Batlivala & Karani Securities Pvt Ltd and Batlivala & Karani Finserv Pvt Ltd by asset and wealth management firm 360 ONE.

Batlivala & Karani Securities is engaged in the business of equity broking, distribution of financial products, investment banking and research analysis and Batlivala & Karani Finserv is engaged in the business of distribution of financial products.

Deals beyond a certain threshold require approval from the regulator, which keep a tab on unfair business practices as well as promotes fair competition in the marketplace.

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