The Competition Commission of India (CCI) approved HDFC Life Insurance’s acquisition of Exide Life Insurance on Monday. The regulator has informed that after the completion of the stock acquisition, Exide Life will operate as a wholly owned subsidiary of HDFC Life.
HDFC Life aspires to strengthen its presence in South India, particularly in Tier 2 and Tier 3 cities, through this acquisition.
The terms of the acquisition announced on 3 September stated that HDFC Life will acquire 100% stake in Exide Life Insurance from Exide Industries by issuing 8.70 crore shares at an issue price of Rs 685 crore/share and cash payment of Rs 726 crore, totaling Rs 6,687 crore.
HDFC Life Insurance offers a range of individual and group life insurance solutions including participating, non-participating and unit-linked insurance products. Its product portfolio consists of various life insurance products and investments such as protection, annuity, savings, investment and annuity. HDFC Life has two wholly owned subsidiaries, HDFC Pension Management Company Limited and HDFC International Life and Re Company Limited.
Exide Life Insurance offers many individual and group life insurance products including protection plans (term insurance, child insurance plans), savings and investment plans (including ULIPs), and retirement and pension plans. It does not have any subsidiaries.