CCI clears HDFC ERGO's acquisition of L&T General Insurance

Country's fourth largest general insurer HDFC ERGO has received Competition Commission's nod to acquire rival L&T General Insurance, a Rs 551 crore deal, which was announced in June.

HDFC ERGO, non-life insurance arm of housing finance major HDFC, would purchase 100 per cent equity shareholding of L&T General Insurance from existing shareholder, Larsen & Toubro (L&T).

For the Rs 551-crore transaction, both sides had entered into a share sale and purchase agreement in June.

In a tweet, Competition Commission of India (CCI) said it has approved the "acquisition of L&T General Insurance by HDFC ERGO".

CCI keeps a tab on unfair business practices across sectors and M&A deals above a certain threshold are required to get its approval.

L&T General Insurance operates through around 28 offices.

HDFC ERGO is a joint venture where the mortgage lender holds 51 per cent stake and the rest is with ERGO International, which is part of Germany's Munich Re Group. PTI PRJ RAM SBT ABK .