Anti-trust body, Competition Commission of India (CCI) has given its nod to 26% stake transfer in Max New York Life (MNYL) to Japanese company Mitsui Sumitomo Insurance Company. As per CCI new combination is not likely to have an appreciable adverse effect on competition in India hence, it has given its nod to the proposed combination.
Max New York Life Insurance is a joint venture between Max India and U.S.A. based New York Life, recently New York Life decided to exit from the JV by selling its 26% stake to Mitsui Sumitomo.
According to the share purchase agreement, Mitsui Sumitomo will acquire 16.63% equity share capital of Max New York Life from New York Life and 9.37% from Max India. In a separate agreement New York Life has sold its 9.37% stake in MNYL to Max India.
Subsequent to the proposed combination, New York Life will completely exit from the JV. Post combination Max India will remain the largest shareholder in the JV with 69.78% stake, Axis bank will have 4% stake and Mitsui Sumitomo will have 26% stake.
Mitsui Sumitomo insurance company is engaged in non-life insurance business in India through Cholamandalam MS general insurance, in which it holds 26% stake and it also hold 50% stake in Cholamandalam MS risk services. It is not present in life insurance business in India.
Cholamandalam MS general insurance is engaged in general insurance business in India and Cholamandalam MS risk services is engaged in risk management and engineering solutions in the fields of safety, health and environment.
