The Competition Commission has given approval to HDFC’s acquisition of 51.20% stake in Apollo Munich Health Insurance and subsequently merger of the latter into HDFC Ergo in a deal worth nearly Rs 1,347 crore.
HDFC agreed to acquire Apollo Hospitals Group’s entire 50.8% stake in Apollo Munich Health for Rs 1,336 crore and also the 0.4% stake held by a few employees for Rs 10.84 crore.
HDFC Chairman Deepak Parekh had said the deal will have two steps, HDFC first acquiring 51.2% in Apollo Munich Health and then merging it with HDFC Ergo. The merger with HDFC Ergo will create a strong health insurance franchise with combined gross direct premium of Rs 10,807 crore, Parekh had said. In a tweet, the fair trade regulator said it “approves the acquisition of 51.20% shareholding of Apollo Munich by HDFC and subsequently merger of Apollo Munich into HDFC ERGO.”
