CCI approves Mitsui's 26% stake in Max New York Life

With the stake transfer, the US-based New York Life will exit from the joint venture with Max India

Anti-trust body (CCI) has approved 26% stake transfer in (MNYL) to Japan's Insurance Company.

With the stake transfer, the US-based New York Life will exit from the joint venture with Max India.

Max India is the holding company of MNYL which is a joint venture between Max India and New York Life.

"...The assessment of the proposed combination, the Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination," CCI said in a notification.

According to the share purchase agreement, Mitsui Sumitomo will acquire 16.63% equity share capital of MNYL from New York Life and 9.37% from Max India.

By way of a separate agreement on April 12, 2012, New York Life has sold its 9.37% shares in MNYL to Max India.

"Subsequent to the proposed combination, New York Life would completely exit from MNYL and Max India and Mitsui Sumitomo would control MNYL with Mitsui having 26% shareholding," it said.

Post combination, the shareholding of other shareholders in MNYL would remain unchanged with Max India being the largest shareholder holding 69.78% of equity capital of MNYL while Axis Bank holds the balance 4%.

Japanese insurance company Mitsui Sumitomo and its subsidiaries is manily engaged in non-life insurance business across the globe. And it is not engaged in life insurance sector in India.

It is present in India through its investment in Cholamandalam-MS General Insurance Company with 26% equity shares and in Cholamandalam-MS Risk Services with 50% share.

Cholamandalam-MS General Insurance is engaged in general insurance business in India and Cholamandalam-MS Risk Services is engaged in risk management and engineering solutions in the fields of safety, health and environment.

As per the existing laws, FDI up to 26% is allowed in the insurance sector under automatic route.

Indian insurance sector has 42 private players in life and general insurance business sharing about 30% of the market share in life insurance and 41% of the market share in general insurance sector.

In 2010-11, the top five in India accounted for around 87% of the business. While, LIC is the largest player with about 69.78% market share, the market share of MNYL in life insurance industry is only 1.99%.

Shares of Max India today closed at Rs 186.55 apiece on the BSE, up 1.3% from the previous close.

image
Business Standard
177 22
Business Standard

CCI approves Mitsui's 26% stake in Max New York Life

With the stake transfer, the US-based New York Life will exit from the joint venture with Max India

Press Trust of India  |  New Delhi 



Anti-trust body (CCI) has approved 26% stake transfer in (MNYL) to Japan's Insurance Company.

With the stake transfer, the US-based New York Life will exit from the joint venture with Max India.



Max India is the holding company of MNYL which is a joint venture between Max India and New York Life.

"...The assessment of the proposed combination, the Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination," CCI said in a notification.

According to the share purchase agreement, Mitsui Sumitomo will acquire 16.63% equity share capital of MNYL from New York Life and 9.37% from Max India.

By way of a separate agreement on April 12, 2012, New York Life has sold its 9.37% shares in MNYL to Max India.

"Subsequent to the proposed combination, New York Life would completely exit from MNYL and Max India and Mitsui Sumitomo would control MNYL with Mitsui having 26% shareholding," it said.

Post combination, the shareholding of other shareholders in MNYL would remain unchanged with Max India being the largest shareholder holding 69.78% of equity capital of MNYL while Axis Bank holds the balance 4%.

Japanese insurance company Mitsui Sumitomo and its subsidiaries is manily engaged in non-life insurance business across the globe. And it is not engaged in life insurance sector in India.

It is present in India through its investment in Cholamandalam-MS General Insurance Company with 26% equity shares and in Cholamandalam-MS Risk Services with 50% share.

Cholamandalam-MS General Insurance is engaged in general insurance business in India and Cholamandalam-MS Risk Services is engaged in risk management and engineering solutions in the fields of safety, health and environment.

As per the existing laws, FDI up to 26% is allowed in the insurance sector under automatic route.

Indian insurance sector has 42 private players in life and general insurance business sharing about 30% of the market share in life insurance and 41% of the market share in general insurance sector.

In 2010-11, the top five in India accounted for around 87% of the business. While, LIC is the largest player with about 69.78% market share, the market share of MNYL in life insurance industry is only 1.99%.

Shares of Max India today closed at Rs 186.55 apiece on the BSE, up 1.3% from the previous close.

RECOMMENDED FOR YOU

CCI approves Mitsui's 26% stake in Max New York Life

With the stake transfer, the US-based New York Life will exit from the joint venture with Max India

Anti-trust body Competition Commission of India (CCI) has approved 26% stake transfer in Max New York Life Insurance (MNYL) to Japan's Mitsui Sumitomo Insurance Company.

Anti-trust body (CCI) has approved 26% stake transfer in (MNYL) to Japan's Insurance Company.

With the stake transfer, the US-based New York Life will exit from the joint venture with Max India.

Max India is the holding company of MNYL which is a joint venture between Max India and New York Life.

"...The assessment of the proposed combination, the Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination," CCI said in a notification.

According to the share purchase agreement, Mitsui Sumitomo will acquire 16.63% equity share capital of MNYL from New York Life and 9.37% from Max India.

By way of a separate agreement on April 12, 2012, New York Life has sold its 9.37% shares in MNYL to Max India.

"Subsequent to the proposed combination, New York Life would completely exit from MNYL and Max India and Mitsui Sumitomo would control MNYL with Mitsui having 26% shareholding," it said.

Post combination, the shareholding of other shareholders in MNYL would remain unchanged with Max India being the largest shareholder holding 69.78% of equity capital of MNYL while Axis Bank holds the balance 4%.

Japanese insurance company Mitsui Sumitomo and its subsidiaries is manily engaged in non-life insurance business across the globe. And it is not engaged in life insurance sector in India.

It is present in India through its investment in Cholamandalam-MS General Insurance Company with 26% equity shares and in Cholamandalam-MS Risk Services with 50% share.

Cholamandalam-MS General Insurance is engaged in general insurance business in India and Cholamandalam-MS Risk Services is engaged in risk management and engineering solutions in the fields of safety, health and environment.

As per the existing laws, FDI up to 26% is allowed in the insurance sector under automatic route.

Indian insurance sector has 42 private players in life and general insurance business sharing about 30% of the market share in life insurance and 41% of the market share in general insurance sector.

In 2010-11, the top five in India accounted for around 87% of the business. While, LIC is the largest player with about 69.78% market share, the market share of MNYL in life insurance industry is only 1.99%.

Shares of Max India today closed at Rs 186.55 apiece on the BSE, up 1.3% from the previous close.

image
Business Standard
177 22
Widgets Magazine

More News

  • PTC India CMD Deepak Amitabh PTC India to cross 50 bn units of electricity sale by 2017-18, says top executive
  • Costs, margins dog Aditya Birla Retail Costs, margins dog Aditya Birla Retail
Widgets Magazine
Widgets Magazine

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard