Bajaj Group Seeks CCI Approval for ₹24,180 Crore Allianz Stake Buy

The Bajaj Group has approached the Competition Commission of India (CCI) for approval to acquire Allianz SE’s 26% stake in their joint life and general insurance businesses, in a landmark ₹24,180-crore deal, the largest in India’s insurance sector to date. 

According to Bajaj Finserv’s earlier statement, Bajaj Group will raise its ownership in Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company from 74% to full 100% control. The move marks the conclusion of a 24-year partnership, with both Bajaj and Allianz opting to pursue independent strategies in India’s growing insurance market. 

Transaction Structure and Market Impact 

In filings with the CCI, Bajaj Finserv, Bajaj Holdings & Investment, and Jamnalal Sons outlined plans to acquire Allianz’s stake in tranches. Additionally, Bajaj Finserv plans to acquire Allianz’s 50% holding in Bajaj Allianz Financial Distributors in a single tranche, shifting it from a 50:50 joint venture to complete Bajaj ownership. 

The Bajaj entities asserted that the transaction would merely shift control from joint to sole ownership, without affecting market competition. They emphasised that the relevant insurance markets are highly fragmented, dynamic, and competitive, and that none of the involved entities wield significant market power to threaten competition. 

Regulatory Outlook and Strategic Gains 

The insurance sector’s tight regulatory environment and the absence of dominant market players were cited to support the argument that the deal would not adversely impact competition. 

The final decision rests with the CCI based on its independent assessment. 

Last month, Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, highlighted that Bajaj Allianz Life and General Insurance together boast premiums exceeding ₹40,000 crore. He noted that consolidating ownership under Bajaj would help drive greater value for shareholders as the companies continue to scale. 

Also Read: Bajaj Housing Finance PAT Surges 54% in Q4 FY25! 

Conclusion 

The proposed acquisition is currently under review by the CCI, which, if approved, will reinforce Bajaj Group’s position in the insurance sector. The final decision will determine the completion of the Group’s plan to fully acquire Allianz’s stakes across their joint insurance venture.  

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