Looking for the regulator’s approval, Bajaj Group entities stated the proposed transaction “just isn’t more likely to trigger any considerable opposed impact on competitors in India in any market”.
As per the submitting final week, Bajaj Finserv, Bajaj Holdings & Funding and Jamnalal Sons will purchase the 26% stake in every of the 2 insurance coverage entities in tranches from Allianz.
The mixture additionally contains the proposed acquisition of a 50% stake in Bajaj Allianz Monetary Distributors by Bajaj Finserv in a single tranche from Allianz. Presently, the corporate is a 50:50 three way partnership between Bajaj Finserv and Allianz.
Within the submitting, the buying entities stated “the proposed mixture will merely lead to change in management” of the 2 insurance coverage corporations and Bajaj Allianz Monetary Distributors from the present joint to sole management of Bajaj Group. So, the “proposed mixture can have no impression in the marketplace dynamics”.Even in any other case, the related markets are extremely fragmented, dynamic and really aggressive in nature, they argued.Not one of the events has excessive market shares or energy in any of the horizontal, vertical or complementary markets, the submitting stated. None of them has any skill or incentive to foreclose competitors in any of the markets, and the insurance coverage sector is very regulated, they stated.
The CCI decides on such purposes based mostly by itself evaluation of information.
Final month, Bajaj Finserv chairman and managing director Sanjiv Bajaj had stated the 2 insurance coverage firms, constructed with Allianz, collectively had a premium in extra of ₹40,000 crore. The only possession would assist carry extra worth for shareholders, he had stated.
