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Bharti Axa and Reliance jointly terminate deal of stake sale

The proposed deal of Bharti Enterprises to hive off its 74% stake in both the insurance joint ventures with Axa to Reliance Industries has been terminated by both parties.

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2 mins 14 secs
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Last Updated - May 23, 2023
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The proposed deal of Bharti Enterprises to hive off its 74% stake in both the insurance joint ventures with Axa to Reliance Industries has been terminated by both parties. Citing the concerns of disagreement over governance and long-term vision, both companies mutually agreed to call off the discussions.

Bharti Enterprises, one of India’s most prominent business conglomerates in telecom, retail, financial services, manufacturing, and software holds a 74% stake in the insurance joint venture with AXA Asia Pacific Holdings Ltd (APH) having the remaining 26% stake. Bharti Axa Insurance venture launched its life insurance company in 2006 and general insurance company in 2008 and has created a good presence across India.

However, earlier this year, Bharti had expressed that they would sell their stake to Mukesh Ambani-led Reliance Industries and exit both the insurance joint ventures. The deal between Reliance and Bharti also received approval from the Competition Commission of India (CCI) after they notified CCI about the proposed acquisition. The proposal would have enabled Reliance Industries Limited (RIL) and its associate Reliance Industrial Infrastructure Limited (RIIL) to take over the general insurance and the life insurance business from Bharti.

The deal between Bharti and Reliance was said to be valued at around Rs 1,665 crore ($370 million) and had it gone through then the long wait of Mukesh Ambani to enter the insurance sector would have been over. But it looks like Reliance Industries will have to wait for some more time before they can find inroads into the Insurance sector.

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Jay Vasa is a content writer, who has got his core emphasis on insurance related information. The sole motive of writing articles is to spread appropriate information to the people regarding one of the important and discussed topic in today's time.