21 July, 2015
On May 13, 2015, CCI approved that acquisition by AXA India Holdings (‘AXA India’) and Société Beaujon of additional shares in their joint venture companies i.e., Bharti AXA Life Insurance Company Limited (‘BAL’) and Bharti AXA General Insurance Company Limited (‘BAGI’).
AXA India is an investment holding company established to hold AXA group’s equity in- terests in joint ventures in India. Société Beaujon is part of AXA group and established as an investment holding company to hold AXA group’s equity interest in various jurisdictions. BAL offers a range of life insurance products and services. Relevantly, BAGI offers a range of general insurance products and services.
CCI observed that AXA India and Société Beaujon already held a minority shareholding in BAL and BAGI, however both AXA India and Société Beaujon had certain affirmative vot- ing rights in BAL and BAGI including the right to approve business plans and annual budgets, commencement of new business activity and appointment of the Company Secretary and Chief Executive Officer. Accordingly CCI observed that AXA India and Société Beaujon had joint con- trol over BAL and BAGI and that post combination the rights enjoyed by AXA India and Société Beaujon would remain unchanged.
CCI assessed the competitive impact of the transaction in the insurance sector in India. As there would be no change in control over BAGI and BAL post the transaction. Accordingly CCI approved the proposed transaction, as it was unlikely to cause any AAEC.
For further information, please contact:
Zia Mody, Partner, AZB & Partners
Shuva Mandal, Partner, AZB & Partners