The Competition Commission of India, CCI has given its approval for the proposed combination involving Housing Development Finance Corporation Limited, HDFC Limited wherein it acquired additional shares of HDFC Life Insurance Company Limited (HDFC Life) and HDFC ERGO General Insurance Company Limited, HDFC ERGO.
However, the HDFC Limited is a publicly listed housing finance company which is incorporated under the Companies Act, of 1956, and its shares are listed on the National Stock Exchange of India Limited and BSE Limited with its engagement in order to provide the finance for housing and commercial properties in India.
Housing Development Finance Corporation Limited, HDFC is the life insurance company wherein it offers various life insurance and investment products registered with the Insurance Regulatory and Development Authority of India. Therefore, it also have the range of life insurance and investment products that include options for protection, pension, savings, investment, and annuity.
Further, the HDFC ERGO being the registered insurance provider under the Insurance Regulatory and Development Authority of India, who is specialized in offering a comprehensive range of non-life insurance products in India and the products include motor insurance, health insurance, travel insurance, home insurance, and cyber insurance for retail customers. The HDFC ERGO also offered offers customized insurance solutions such as property, rural, marine, trade credit, liability, and other specialized insurance products for
corporate clients.
Therefore, the proposed combination entails HDFC Limited wherein it acquired the additional shares of HDFC Life and HDFC ERGO through on a spot delivery basis. The said acquisition aims to ensure compliance with Indian banking laws, as HDFC Limited (after the proposed combination) and the amalgamated entity HDFC Bank Limited, HDFC Bank will collectively hold over 50% of the shareholding.
