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Competition Commission approves LIC's 51% stake acquisition in IDBI Bank

In August, the government gave its nod for the LIC's proposed purchase of up to 51% stake in the IDBI bank

Press Trust of India  |  New Delhi 

IDBI
Representative image of IDBI Bank

The has cleared LIC's proposed acquisition of up to 51 per cent stake in debt-laden

The deal would help the insurance behemoth to enter the banking space and would provide business synergies despite the IDBI Bank's stressed balance sheet.

In a tweet on Tuesday, the fair trade regulator said it has approved "acquisition of up to 51 per cent equity share capital in Ltd by of India".

Mergers and acquisitions beyond a certain threshold require the approval of the of India (CCI), which keeps a tab on unfair business practices across sectors.

In August, the government gave its nod for the LIC's proposed purchase of up to 51 per cent stake in the bank.

With the deal, the insurer would have access to around 2,000 branches of the bank through which it can sell its products.

Last month, the LIC announced an open offer to buy 26 per cent stake from shareholders of the bank.

The open offer, wherein shares are to be acquired at a price of Rs 61.73 apiece, would commence from December 3.

First Published: Tue, November 27 2018. 20:05 IST
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