On November 7, the Competition Commission of India (CCI) approved Bharti Group’s purchase of French insurer AXA’s 49 percent stake in their life insurance joint venture. This acquisition elevates Bharti Group’s total shareholding to 100 percent, marking the conclusion of their two-decade-long joint operation.
The proposed combination relates to:
- The acquisition of 49% shareholding of Bharti AXA Life Insurance Company Limited. (BALIC) by Bharti Life Ventures Private Limited (BLVPL) from AXA India Holdings (“AXA”) (“Proposed Transaction 1”) taking its total shareholding in BALIC to 100% and acquisition of BALIC’s sole control.;
- The acquisition of 48.54% shareholding of Bharti Management Services Limited (BMSL) by Bharti Enterprises Limited (BEL) from Societe Beaujon (a subsidiary of AXA) (“Proposed Transaction 2”) taking its total shareholding in BMSL to 100% and acquisition of BMSL’s sole control.
- The Proposed Transactions 1 and 2 are collectively referred to as the “Proposed Transaction.
Earlier reports indicated that Bharti was engaged in discussions with various investors to expand the business through partnerships or amalgamation with their respective entities.
AXA had expressed intentions to withdraw from the joint venture over the past few years. Previously, the Hinduja Group and Abu Dhabi Investment Authority (ADIA) had expressed interest in acquiring AXA’s stake in the insurance company, although the transaction did not materialize.
