CCI clears Sanlam deal to buy 23% stake in SGIC, SLIC

CCI has cleared the deal of Sanlam Ltd to acquire 23% stake in Shriram group’s two insurance firms.

The Dollar Business Bureau

Competition Commission of India (CCI) has given its approval to Sanlam Ltd to acquire 23 percent stake in Shriram group’s two insurance companies.  

Sanlam Emerging Markets Mauritius Ltd (SEM), group firm of Sanlam Ltd, will do the acquisition process.

Sanlam Ltd, a financial services firm based in South-Africa, would buy 23 percent share each in Shriram General Insurance Company (SGIC) and Shriram Life Insurance Company (SLIC) from Shriram Captital, according to a statement by SEM. 

This year, in February, the firms entered into an agreement of sale of stake.

While approving the deal, CCI mentioned that the given deal would not have an adverse impact on competition in the country.

CCI said that currently the rights enjoyed by SEM in the given firms (SLIC and SGIC) will not be changed after the proposed combination. The rise in the stake of SEM in both the firms will not bring any change in management of the firms, after the proposed combination.

After the agreement, the entire stake of the SEM in SLIC and SGIC will rise to 24.39 percent and 42.99 percent, respectively.

SEM is an arm of SLIC, which in turn is a Sanlam Ltd.’s subsidiary. The company is involved in holding investment in businesses related to banking, insurance and investment management.

Sanlam Ltd is a financial services group registered at the Johannesburg Stock Exchange (JSE) and the Namibian Stock Exchange (NSX).

 

The Dollar Business Bureau - May 16, 2016 12:00 IST
 
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