Ritik Gupta
- Presently, the bank holds about a 1 per cent stake in Max Life and is moreover the largest distributor of the insurer’s commodities through banking channel.
- As per the combination notice filed with CCI, the shareholding of Axis Bank in Max Life will heighten to approximately 9.9 per cent.
Fair trade regulator Competition Commission of India (CCI) on Wednesday asserted that it had authorised the stake acquisition in Max Life Insurance Company by Axis Bank, Axis Capital and Axis Securities.
In accordance with the combination notice filed with CCI, the shareholding of Axis Bank in Max Life will heighten to almost 9.9 per cent.
Presently, the bank holds about 1 per cent stake in Max Life and is also the largest distributor of the insurer’s commodities through banking channel.
Further, Axis Capital Ltd and Axis Securities will acquire 2 per cent and 1 per cent, respectively, shareholding in Max Life.
Besides, Axis commodities will have a liberty to acquire an extra stake of up to 7 per cent in Max Life, in one or more tranches, taking their whole stake to 19.99 per cent.
Commission approves acquisition of stake in Max Life Insurance Company by Axis Bank, Axis Capital and Axis Securities pic.twitter.com/mIl2G5gPho
— CCI (@CCI_India) January 20, 2021
“Commission approves acquisition of the stake in Max Life Insurance Company by Axis Bank, Axis Capital and Axis Securities,” the fair trade regulator said in a tweet.
The recommended combination will need the authorisation of the Insurance Regulatory and Development Authority of India (Irdai), the combination notice said.
In October 2020, the Reserve Bank of India (RBI) rescinded Axis Bank’s preliminary suggestion to lift the stake to 29 per cent and trimmed it to a total of 19.02 per cent.
The private sector lender hoped to acquire a 29 per cent stake in the insurer, but alterations had to be given rise to in the agreement following communication with Irdai.
