The proposed acquisition of stake in private sector Axis Bank’s Max Life Insurance Company Limited has been approved by the Competition Commission of India (CCI). Fair trade regulator CCI gave this information on Tuesday. Last year in August, the company acquired Axis Bank by issuing 14.25 crore equity shares to help Max Life Insurance support its future growth ambitions, enhance its capital position and improve solvency margins, PTI reported. Capital investment was announced by.
Subscription of 14,25,79,161 equity shares approved
According to a post by CCI on social media platform X, the Competition Commission of India (CCI) has approved the subscription of 14,25,79,161 equity shares of Max Life Insurance Company Limited by Axis Bank Limited. Private sector lender Axis Bank provides services in retail banking, which includes retail lending, while Max Life Insurance is engaged in the business of providing life insurance and annuity products and investment plans in India.
Then approval is required from the regulator
Deals above a certain limit require approval from the regulator, which helps keep a check on unfair business practices as well as promote fair competition in the market. Earlier, Axis Bank had proposed to acquire additional 6 percent stake in Max Life Insurance at Rs 113 per share. Pension regulator PFRDA has already approved the proposed change in the shareholding pattern of Max Life related to capital infusion by Axis Bank. In April 2021, Axis Bank and its subsidiaries, Axis Securities and Axis Capital collectively acquired 12 per cent stake in Max Life from Max Financial.
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