Larsen & Toubro (L&T),Generali Group and Kishore Biyani promoted Future Group today entered into a non-binding agreement to merge L&T General Insurance with Future Generali India Insurance.
Post-merger,L&T will hold 51 per cent in the merged entity with Generali will hold 26 per cent stake and the rest 23 per cent will continue to be held by the Future Group.
The completion of the transaction is subject to satisfactory due diligence by both the parties,execution of mutually agreed definitive binding documents and requisite approvals from Irda and other regulators and related corporate bodies, L&T said in a statement. Though the deal size was not given by the company,sources said the deal is valued at around Rs 560 crore.
As per Irda data,while L&T General Insurance had a gross written premium of Rs 130 crore during the April-January period of current financial year,Future Generali had a premium collection of Rs 926.42 crore.