CCI clears proposed deal to acquire stake in Magma HDI General Insurance by 2 entities

PTIUpdated: Thursday, June 17, 2021, 11:36 PM IST
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CCI clears proposed deal to acquire stake in Magma HDI General Insurance by 2 entities | Pexels

The Competition Commission of India (CCI) on Thursday said it has approved the proposed acquisition of a stake in Magma HDI General Insurance Company by two entities.

Under the transaction, India Advantage Fund S4 I & Dynamic India Fund S4 US I, and NHPEA Trisul Holding B.V. would acquire a stake in the general insurance company.

In a tweet, the fair trade regulator said it has approved the deal.

The combination contemplates an acquisition of an effective combined interest of less than 25 per cent, on a fully diluted basis, of the share capital of Magma HDI by IAF S4 I and DIF, acting through SPV-I. Besides, NTH would buy an effective combined interest of less than 10 per cent, on a fully diluted basis, of the company's share capital, as per a notice filed with CCI.

Deals beyond a certain threshold need approval from CCI, which keeps a tab on anti-competitive practices across sectors in the market place.

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