The Insurance Regulatory and Development Authority of India (IRDAI) on November 27 gave an in-principle approval to the acquisition of General Insurance business of Bharti AXA General Insurance Company Limited by ICICI Lombard General Insurance Company Limited, the company said in an exchange filing.
Earlier, BSE Limited, National Stock Exchange of India Limited and the Competition Commission of India (CCI) had approved the proposed acquisition by ICICI.
Meanwhile, IRDAI in its letter stated that they gave the 'in-principle' approval for the demerger of the general insurance business of Bharati AXA General Insurance to ICICI Lombard General Insurance.
"Post submission of all the required documents/information, the authority hereby grants 'In-principle' approval under section 35 to 37 read with IRDA Regulations, 2017 for demerger of general insurance business undertaken by Bharti AXA to ICICI Lombard."
The IRDAI mentioned that following the demerge, ICICI will issue 1.82 crore equity shares to Bharti General Ventures Private Limited and 1.75 crore equity shares to Societe Beaujon.Currently, Bharti Enterprises owns 51 percent in Bharti AXA General. The firm has joint venture with French firm AXA which owns 49 percent stake. With the deal with ICICI Lombard in place, Bharti and AXA will be public shareholders in the combined entity.