Central Bank of India gets CCI's nod to acquire stakes in two Future Generali entities

In July 2022, the National Company Law Tribunal (NCLT) ordered the initiation of insolvency resolution proceedings against the debt-ridden FRL.

The Competition Commission of India (CCI) on Tuesday cleared state-owned Central Bank of India’s proposed acquisition of stakes in Future Generali India Insurance and Future Generali India Life Insurance.

Central Bank of India is a scheduled commercial bank. “The proposed combination envisages the acquisition by Central Bank of India of a 24.91 percent equity stake in Future Generali India Insurance Company Ltd (FGIICL),” CCI said in a release. FGIICL provides personal insurance, commercial insurance, social, and rural insurance, among other services.

The CCI has also approved a 25.18 percent equity stake in Future Generali India Life Insurance Company Ltd (FGILICL) through a bid/resolution plan submitted by Central Bank of India under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. FGILICL offers savings insurance, investment plans (ULIP), term insurance plans, health insurance plans, child plans, retirement plans, rural insurance plans, and group insurance plans.

In August, Central Bank of India announced that it emerged as the successful bidder for the stake acquisition of debt-ridden Future Enterprises Ltd (FEL) in life and general insurance ventures. The state-owned bank said it has been declared the successful bidder by the Committee of Creditors (CoC) for the sale of Category 1 assets of FEL in Future Generali India Life Insurance Company Ltd and Future Generali India Insurance Company Ltd. Future Enterprises owned a 25 percent stake in Future Generali India Insurance and a 33 percent stake in Future Generali Life Insurance.

In July 2022, the National Company Law Tribunal (NCLT) ordered the initiation of insolvency resolution proceedings against the debt-ridden FRL. The NCLT passed the order after allowing a petition filed by the Bank of India (BoI), following loan defaults by FRL — the flagship firm of the Kishore Biyani-led group.