Bajaj Finserv Ltd finalised the Share Purchase Agreements on Monday to acquire the 26 per cent stake held by Germany-based Allianz SE in its insurance subsidiaries, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company.
This development marked the conclusion of a 24-year partnership and followed a series of constructive discussions to ensure a smooth transfer of ownership.
With this acquisition, Bajaj Group’s stake in both Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC) increased to 100 per cent from the earlier share of 74 per cent, reported PTI.
Bajaj Finserv confirmed in a statement that the deal was subject to regulatory clearances, including approvals from the Competition Commission of India and the Insurance Regulatory and Development Authority of India.
The agreed purchase price for Allianz SE’s 26 per cent stake was set at Rs 13,780 crore for BAGIC and Rs 10,400 crore for BALIC. As part of the agreement, the joint venture arrangements between Bajaj Group and Allianz SE would be dissolved once the first tranche of at least 6.1 per cent was acquired, and Allianz SE was reclassified from a promoter to an investor.
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Transition and Future Strategies
Under the agreement, Bajaj Finserv Ltd planned to acquire around 1.01 per cent of the stake, Bajaj Holdings and Investment Ltd approximately 19.95 per cent, and Jamnalal Sons Pvt. Ltd. about 5.04 per cent, totaling 26 per cent ownership in each insurance company. Post-acquisition, Bajaj Finserv’s stake in both firms would stand at 75.01 per cent.
Upon the termination of the joint venture, both Bajaj Group and Allianz intend to operate independently in India’s insurance sector. The acquisition represented a pivotal step for Bajaj Group in advancing next-generation insurance solutions through innovative technologies. It also brought both insurance companies fully under the Bajaj Group umbrella, reinforcing its position as one of the key players in the sector.
To ensure a seamless transition, Allianz and Bajaj remained committed to minimising any impact on policyholders, intermediaries, and stakeholders. Additionally, Bajaj Finserv and Allianz entered into agreements that would facilitate the continuity of reinsurance and other essential services during the transition period.
