Country’s fourth largest general insurer HDFC ERGO has received Competition Commission’s nod to acquire rival l&T General Insurance, a `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 `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 the wathcdog’s approval for this purpose.
The non-life insurer, l&T General Insurance operates through around 28 offices in the country. 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.