New Delhi: Fair trade regulator CCI on Monday approved AIA group’s 23 per cent additional stake purchase in its life insurance joint venture with the Tata group.
AIA, which holds 26 per cent stake in Tata AIA Life Insurance Company, will raise it to 49 per cent with the acquisition.
However, while announcing the deal in December last year, the company did not disclose the financial details. In a tweet, the Competition Commission of India (CCI) said it “approves acquisition of additional 23 per cent shares in Tata AIA Life Insurance Company Ltd by AIA International Ltd”.
Tata AIA Life Insurance, which started operations in 2001, offers a wide array of life insurance solutions that cover protection, savings and wealth creation needs.
Many overseas partners have proposed to raise stakes in their Indian joint ventures after Parliament enacted a law allowing increase in foreign direct investment in private insurance companies to 49 per cent last year.
The prominent names include Nippon in Reliance Life Insurance, AXA in Bharti AXA Life Insurance, Bupa in Max BUPA health insurance and Sunlife Financial Inc in Birla Sunlife.