Deepak Iyer will be a new CEO and MD at Bharti AXA General Insurance (GI). ...
The deal between Mukesh Ambani led Reliance and Bharti has received approval from Competition Commission of India (CCI) on Tuesday, after RIL and RIIL notified CCI about the proposed acquisition on July 8.
Bharti ventured into the insurance space with 74% stakes in Bharti AXA General Insurance Co. Ltd and Bharti AXA Life Insurance Co. Ltd. CCI has approved Reliance Industries Ltd (RIL) and Reliance Industrial Infrastructure Ltd’s (RIIL) takeover of these 74% stakes in the insurance venture.
After reviewing the documents submitted by RIL and RIIL, CCI said, “It is found that the acquirers and the acquired enterprises do not operate in interchangeable or substitutable products. Thus there is no horizontal overlap in the proposed combination.”
CCI also ruled out any significant vertical relationship that could pose any competitive constraints in the life and general insurance businesses in India.
There are other regulatory approvals which need to be taken before the deal between RIL, RIIL and Bharti can go through.