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HomeMarket NewsStocks NewsBajaj Finserv to buy out Allianz's stake in life & general insurance arms for over ₹24,000 crore
According to the terms of the Share Purchase Agreements (SPAs) executed, the joint venture agreements will be terminated upon the completion of the first tranche of acquisition of at least 6.1% and reclassification of Allianz from being a Promoter to Investor.
Bajaj Finserv Ltd on Monday (March 17) said it has approved the acquisition of Allianz SE’s entire 26% stake in their joint insurance ventures—Bajaj Allianz General Insurance Company Ltd (BAGIC) and Bajaj Allianz Life Insurance Company Ltd (BALIC).
The agreed consideration for a 26% stake in BAGIC and BALIC is ₹13,780 crore and ₹10,400 crore respectively. The deal marks the end of Bajaj and Allianz’s long-standing partnership and will give the Bajaj Group full ownership of both insurance companies.
Under the transaction, Bajaj Finserv will acquire 1.01% equity in each of BAGIC and BALIC for ₹535 crore. The remaining 24.99% stake will be purchased by Bajaj Holdings and Investment Ltd (19.95%) and Jamnalal Sons Pvt Ltd (5.04%), ensuring full control of the insurance businesses within the Bajaj Group.
Additionally, Bajaj Finserv will acquire Allianz’s 50% stake in Bajaj Allianz Financial Distributors Ltd (BAFDL) for up to ₹12.5 crore, making it a wholly owned subsidiary.
The deal is subject to regulatory approvals, including clearance from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI). Bajaj Finserv stated that the acquisition will drive long-term value creation and strengthen its position in India's insurance market.
Shares of Bajaj Finserv Ltd ended at ₹1,871.85, up by ₹64.90, or 3.59%, on the BSE.
First Published:
Mar 17, 2025 10:22 PM
IST
