CCI clears HDFC ERGO's acquisition of L&T General Insurance

NEW DELHI: Country's fourth largest general insurer HDFC ERGO has received Competition Commission's nod to acquire rival L&T General Insurance, a Rs 551 crore deal, which was announced in June.

HDFC ERGO, non-life insurance arm of housing finance major HDFC, would purchase 100 per cent equity shareholding of L&T General Insurance from existing shareholder, Larsen & Toubro (L&T).

For the Rs 551-crore transaction, both sides had entered into a share sale and purchase agreement in June.

In a tweet, Competition Commission of India ( CCI) said it has approved the "acquisition of L&T General Insurance by HDFC ERGO".

CCI keeps a tab on unfair business practices across sectors and M&A deals above a certain threshold are required to get its approval.

L&T General Insurance operates through around 28 offices.

HDFC ERGO is a joint venture where the mortgage lender holds 51 per cent stake and the rest is with ERGO International, which is part of Germany's Munich Re Group.