HDFC to acquire Apollo Munich Health Insurance for Rs 1,347 crore

Apollo Munich will be later merged with general insurance company HDFC ERGO, part of the HDFC group.

Mortgage lender Housing Development Finance Corporation (HDFC) will acquire controlling stake of 51.2 per cent in Apollo Munich Health Insurance for about Rs 1,347 crore from Apollo Hospitals group and few employees who hold stake in the standalone health insurer.

After the acquisition, Apollo Munich Health Insurance will be merged with the non-life insurance arm of mortgage lender HDFC Ergo. The deal is subject to regulatory approvals and the entire process is expected to be completed in nine months.

“We had to do a two-step transaction since if HDFC Ergo had directly bought Apollo stake, it would have breached the 49 per