CCI approves deal for selling stakes in Magma General Insurance Company

Fair trade regulator CCI has cleared the proposed acquisition of majority stake in Magma HDI General Insurance Company Ltd by Sanoti Properties LLP.

Sanoti is into the business of development of commercial and residential real estate projects.

As per a notice filed with the Competition Commission of India (CCI), the proposed combination is being undertaken in order to ensure compliance with the mandatory regulations of the Insurance Regulatory and Development Authority of India (IRDAI).

CCI has approved "acquisition of 55.39 per cent of the total equity share capital of Magma HDI General Insurance Company Limited by Sanoti Properties LLP," according to a tweet on Wednesday.

Under the deal, Sanoti would acquire shares constituting 55.39 per cent of the total equity share capital of Magma HDI. It would also involve buying shares of Magma HDI held by certain shareholders -- Poonawalla Fincorp Ltd and Serum Institute of India Pvt Ltd.

Transactions beyond certain thresholds require the approval of CCI.

In another tweet, the regulator said it has approved the acquisition of majority stake in SMW Ispat Pvt Ltd by OFB Tech Pvt Ltd.