CCI approves Axis-Max Life deal

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Fair trade regulator Competition Commission of India (CCI) on Wednesday said it has approved the stake acquisition in Max Life Insurance Company by Axis Bank, Axis Capital and Axis Securities. As per the combination notice filed with CCI, the shareholding of Axis Bank in Max Life will increase to approximately 9.9 per cent.

Currently, the bank holds about 1 per cent stake in Max Life and is also the biggest distributor of the insurer's products through banking channel. Additionally, Axis Capital Ltd and Axis Securities will acquire 2 per cent and 1 per cent, respectively, shareholding in Max Life.

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Further, Axis entities will have a right to acquire an additional stake of up to 7 per cent in Max Life, in one or more tranches, taking their total stake to 19.99 per cent. "Commission approves acquisition of the stake in Max Life Insurance Company by Axis Bank, Axis Capital and Axis Securities," the fair trade regulator said in a tweet.

The proposed combination will require the approval of the Insurance Regulatory and Development Authority of India (Irdai), the combination notice said. In October 2020, the Reserve Bank of India (RBI) overruled Axis Bank's initial proposal to raise the stake to 29 per cent and pared it to an aggregate of 19.02 per cent.

The private sector lender planned to buy 29 per cent stake in the insurer, but changes had to be made in the deal following communication with Irdai.