In the biggest consolidation in the country’s private insurance sector, Max Life Insurance and Max Financial Services will merge into HDFC Standard Life Insurance.
“The Board of Directors of HDFC Standard Life Insurance Company, Max Life Insurance Company Ltd and Max Financial Services Ltd… approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company Ltd and Max Financial Services Ltd into HDFC Life by way of a scheme of arrangement,” HDFC said in a NSE filing.
In a separate filing, Max Financial Services said the agreement provides for a mutually agreed exclusivity period for due diligence and discussions between the parties in relation to the proposed transaction.
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- HDFC Life weighs options as IRDAI says no to merger
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The proposed arrangements would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective High Courts/NCLT, and other third party approvals, as may be applicable, it added.
At present, 49 per cent FDI is allowed in the insurance sector in India.