The Competition Commission of India (CCI) has approved HDFC Life Insurance’s acquisition of 100% of the shares in Exide Life Insurance, a unit of battery manufacturer Exide Industries.
It should be noted that HDFC Life announced in early September that it would take over the entire share capital of Exide Life Insurance for a total amount of ₹6,687 crore. This deal is expected to help HDFC Life strengthen its presence in South India, an area where Exide Life has a strong foothold.
“The Committee approved the acquisition of 100 percent of the share capital of Exide Life Insurance Company Limited by HDFC Life Insurance Company Limited and the subsequent merger of Exide Life with HDFC Life,” the CCI tweeted Tuesday night.
The proposed merger includes the acquisition of fully paid-up equity shares, representing 100 percent of the target by the acquirer from Exide Industries Limited.
Following completion of the stock acquisition, it is proposed to merge Exide Life (which will be a wholly owned subsidiary of HDFC Life) with HDFC Life.
HDFC Life is India’s most valuable private life insurance company. Offers a range of individual and group life insurance solutions including participating, non-participating and unit related insurance products.