The Competition Commission of India (CCI) approves the proposed combination which involves the acquisition of additional shares of HDFC Life Insurance Company Limited by Housing Development Finance Corporation Limited.
Housing Development Finance Corporation Limited (HDFC Limited/Buyer) is a public limited company incorporated under the Companies Act, 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 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 Life Insurance Company Limited (HDFC Life/Lens) is a life insurance company registered with the Insurance Regulatory and Development Authority of India. It offers a range of individual and group life insurance solutions, including investee, private and unit-linked insurance policies. Its product portfolio includes various life insurance and investment products such as protection, retirement, savings, investment and annuity.
The proposed combination involves the acquisition by HDFC Limited of certain additional shares of HDFC Life through one or more market purchases via exchanges (Proposed combination) such that HDFC Limited (after the proposed combination) and the merged entity, i.e. HDFC Bank Limited (HDFC Bank) (after the effective date of the proposed merger of, inter alia, HDFC Limited into HDFC Bank) will hold more than 50% stake in HDFC Life in accordance with Indian banking laws.
A detailed order from the ICC will follow.