The Competition Commission of India (CCI) approves the proposed combination which involves the acquisition by Housing Development Finance Corporation Limited (HDFC Limited) of certain additional shares of HDFC ERGO General Insurance Company Limited (HDFC ERGO).
The proposed combination concerns the acquisition by HDFC Limited of some additional shares of HDFC ERGO on a spot delivery basis (the Proposed transaction) such that HDFC Limited (after the Proposed Transaction) and the merged entity, i.e. HDFC Bank Limited (HDFC Bank) (after the effective date of the proposed merger of, Moreover, HDFC Limited in HDFC Bank) will hold more than 50% stake in HDFC ERGO in accordance with Indian banking laws. (Proposed combination)
HDFC Limited is a limited company incorporated under the Companies Act, of 1956 and its shares are listed on the National Stock Exchange of India Limited and BSE Limited. It is a real estate finance company registered with the National Housing Bank and Reserve Bank of India and is mainly engaged in providing finance to individuals, businesses, and developers for the purchase, construction, development, and repair of houses, apartments, and properties business in India.
HDFC ERGO is registered with the Insurance Regulatory and Development Authority of India for the supply of general insurance products (e.g. non-life insurance) in India. It offers a full range of general insurance products including auto, health, travel, home, and cyber insurance in the retail space and customized products such as property, rural, marine, commercial credit, liability, and other specialist insurance in the corporate space.
A detailed order from the ICC will follow.