The Competition Commission of India (CCI) has approved the acquisition of an additional stake in Niva Bupa Health Insurance Company by Bupa Singapore Holdings.
Bupa Singapore Holdings is a shareholder of Niva Bupa. It is an investment holding company, and a subsidiary of The British United Provident Association Limited (Bupa) i.e., the ultimate parent entity of the group, says the CCI in a statement.
The sale increases Bupa’s shareholding in Niva Bupa to approximately 63%. The partners in Niva Bupa are True North and Bupa. In September, private equity firm True North announced that it would be selling a 20% stake in Niva Bupa for INR27bn ($3.74bn).
Green channel
The CCI said it cleared the deal under the green channel route, which provides for automatic clearance for mergers. This means the transaction is approved when it is filed. This is because the deal would not affect competition in the market.
The CCI said, “Apart from the Bupa Singapore Holdings’s (Acquirer) and Bupa’s existing interests in Niva Bupa (Target), there are no horizontal overlaps, vertical overlaps, or complementary businesses between the Acquirer / Bupa and the target, the transaction is unlikely to raise any competition concerns.”
