 "Bajaj Group seeks CCI nod to acquire Allianz's stake in ₹24,180-cr deal")
The Bajaj Group has approached the Competition Commission of India (CCI) for approval to acquire Allianz SE’s 26 per cent stake in their joint life and general insurance ventures, according to a report by The Economic Times. The deal, valued at ₹24,180 crore, will the largest transaction in India’s insurance industry to date.
With this acquisition, Bajaj Group’s shareholding in both Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company will increase to full ownership from 74 per cent. The deal signifies the end of 24-year collaboration between Bajaj and the German insurer Allianz, with both parties opting to pursue independent strategies in India's rapidly growing insurance sector.
Three Bajaj Group entities to purchase Allianz stake
The application was filed by three Bajaj Group entities: Bajaj Finserv, Bajaj Holdings & Investment, and Jamnalal Sons. These entities will purchase Allianz’s stake in phases.
The proposed combination also involves Bajaj Finserv acquiring Allianz’s 50 per cent stake in Bajaj Allianz Financial Distributors in a single tranche. This financial services arm is currently operated as an equal joint venture between the two companies. ALSO READ | M&M-SML Isuzu deal strategically positive; execution remains key: Analysts
The companies involved reportedly hold modest market shares, lack dominant positions, and face robust competition — all within a tightly regulated industry framework, the report noted.
Bajaj eyes sole control, shareholder gains
Bajaj Group has emphasised that the shift from joint to sole control would not alter market conditions, given the fragmented and competitive nature of the insurance and financial services sectors in India. ALSO READ | Tata Motors board to consider raising Rs 500 crore via securities this week
Previously, Bajaj Finserv’s chairman had indicated that the combined insurance businesses, developed alongside Allianz, had already surpassed ₹40,000 crore in premium volumes. He suggested that full ownership would unlock additional value for shareholders. The antitrust regulator will carry out an independent assessment before making a decision.