Competition Commission approves AXA raising stake in insurance JVs with Bharti
AXA is the first foreign partner to increase its stake in a domestic insurance company after the government had approved up to 49% FDI in the insurance sector in March, compared to 26% earlier. More foreign partners are expected come forward and raise stake in the Indian insurance business.
Fair trade regulator CCI approved European financial services giant AXA's proposal to hike its stake from 26% to 49% in its two insurance ventures with Sunil Mittal led Bharti Group, Bharti AXA Life Insurance and Bharti AXA General Insurance.
Earlier this month, the Foreign Investment Promotion Board (FIPB) had approved the two deals worth Rs 1,290 crore,
The Competition Commission of India (CCI) said it has approved the proposed transactions.
AXA is the first foreign partner to increase its stake in a domestic insurance company after the government had approved up to 49% FDI in the insurance sector in March, compared to 26% earlier. More foreign partners are expected come forward and raise stake in the Indian insurance business.
Separately, CCI also approved GE's acquisition of Alstom's thermal, power, renewable power and grid businesses.
CCI said it has also approved acquisition of signalling business of GE by Alstom.