CCI clears RIL buyout of Bharti’s stake in insurance JV

The Reliance-Bharti AXA deal is first such deal to be cleared since June.

Competition Commission of India (CCI) has cleared Reliance Industries’ buyout of Bharti group’s 74 per cent stake in a insurance joint ventures with AXA of France.

“The monopoly watchdog has cleared the deal within 14 days of application as there was no anti-competition issue involved,” a source said.

The Sunil Mittal-headed Bharti group had exited from its financial services joint ventures and sold its entire 74 per cent stake in both general and life insurance businesses to Mukesh Ambani-led RIL for an undisclosed amount.

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As per the competition law effective from June 1,the high value deals need to have clearance of the monopoly watchdog CCI. The merger deals will come under CCI radar if the combined turnover of the two companies is Rs 4,500 crore and above.

The Reliance-Bharti AXA deal is first such deal to be cleared since June.

Bharti had entered into joint ventures with the AXA group in 2006 and held 74 per cent stake in both these ventures — Bharti AXA Life Insurance and Bharti AXA General Insurance.

RIL and its subsidiary Reliance Industrial Infrastructure (RIIL) would own 57 per cent and 17 per cent respectively in both the insurance companies and would become AXA’s JV partners in India.

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AXA holds 26 per cent stake in the JV in line with the foreign direct investment ceiling in the sector.