The Competition Commission of India (CCI) has cleared a proposal involving Patanjali Ayurved Ltd. and five related entities to acquire a majority stake in Magma General Insurance Ltd. The approval was granted through the green channel route under Section 6(4) of the Competition Act, 2002.
As of 9:15 AM on April 17, 2025, Patanjali Foods share price was trading at ₹1994.10, a 0.33% down, with gains of 15.06% over the past six months and 42.64% over the past year.
The acquisition involves a deal valued at ₹4,500 crore. Sanoti Properties LLP, jointly held by Adar Poonawalla and Rising Sun Holdings Pvt. Ltd. – had earlier approved the sale of its insurance subsidiary, Magma General Insurance, to Patanjali and the Dharampal Satyapal Group.
Entities participating in the transaction include:
Following this acquisition, Patanjali is set to become the promoter entity of Magma General Insurance.
The deal was filed under the green channel route, which permits automatic approval for combinations that do not raise concerns related to competition. As per the CCI, the transaction does not involve any horizontal overlaps, vertical relationships, or complementary business linkages among the parties involved.
Magma General Insurance offers more than 70 products across both retail and commercial segments. Its offerings include:
The company operates in the general insurance space, which continues to have low penetration in many parts of India.
The deal was announced last month and has now received regulatory clearance. No objections were raised by the competition authority, and the transaction is expected to proceed with the standard post-approval processes.
With the CCI approval now in place, the proposed acquisition of Magma General Insurance by Patanjali and associated entities will move forward under regulatory compliance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 17, 2025, 2:27 PM IST
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