HDFC Gets Approval to Acquire Majority Stake in Apollo Munich
Insurance Regulatory and Development Authority of India (IRDAI) has given approval for Housing Development Finance Corporation Ltd (HDFC) to acquire a 51.2% stake in Apollo Munich Health Insurance. Apollo Munich Health Insurance is a joint venture between Apollo Hospitals and Munich Re Group, a German reinsurer.
In a regulatory filing, HDFC said, “The Corporation and HDFC Ergo have received all requisite approvals for the acquisition including competition commission of India (CCI), Reserve Bank of India and the last being from Irdai on 1 January. Post the completion of the proposed acquisition, Apollo Munich will be merged with and into HDFC Ergo, subject to approval from the Mumbai bench of National Company Law Tribunal," HDFC said in a regulatory filing.
In June last year, HDFC strategized towards its growth and agreed to acquire Apollo Munich Hospitals Group’s complete 50.8% stake in a health insurance joint venture with German insurer Munich Re Group.
The policyholders of Apollo Munich Health Insurance, however, need not worry. On completion of the acquisition, their existing health insurance plans will become a part of HDFC Health Insurance.
About HDFC Ergo General Insurance Company
HDFC Ergo General Insurance Company is a popular health insurance provider with a high Claim Settlement Ratio and hence a preferred choice for the potential policyholders. It is a joint venture between HDFC and Ergo International AG. With a wide network of 122 branches spread across 106 cities, the general insurer has its wings spread across the country.
On BSE, HDFC’s shares were up 0.4% at Rs. 2,444.00 while Apollo Hospitals rose 4.5% at Rs. 1490.90.
