IT firm HCL Technologies on Thursday said it has mutually terminated its joint venture with US- based Great American Insurance Company (GAIC).
HCL Technologies had entered into a JV agreement with Ohio, US-based GAIC in September, 2011 with setting up of HCL Eagle Ltd.
HCL Eagle was incorporated in India for providing technological support services to GAIC and its subsidiaries.
"GAIC has agreed and consented to sell to HCL Technologies its eight per cent shares in HCL Eagle Ltd in accordance with the terms of JV termination agreement," HCL Technologies said in a BSE filing.
The price, which is the face value of the GAIC shares, is subject to the approval of the Reserve Bank of India, it added.
"The joint venture between HCL and GAIC has been terminated on mutual understanding to reduce financial/ operational overheads," it said.
HCL and GAIC had signed a new Master Services Agreement covering apps, infra and BPO services in February 2017 for the next four years.
There is no impact to the existing services due to this JV termination, it added.