Bajaj Allianz's Rs 24,180 Crore Breakup Reaches CCI for Clearance

The Bajaj Group has approached the Competition Commission of India (CCI) to seek approval for its plan to buy out Germany’s Allianz SE from their joint life and general insurance ventures. The group had earlier announced its intention to acquire a 26% stake in Bajaj Allianz for Rs 24,180 crore.

Under the proposed deal, Bajaj Finserv Ltd (BFS), Bajaj Holdings and Investment Ltd (BHIL), and Jamnalal Sons Pvt Ltd (JSPL) plan to acquire 26% of the equity shares in both Bajaj Allianz Life Insurance Company Ltd (BALIC) and Bajaj Allianz General Insurance Company Ltd (BAGIC) from Allianz SE in multiple phases.

Additionally, Bajaj Finserv Ltd (BFS) will acquire 50% of the equity shares in Bajaj Allianz Financial Distributors Ltd (BAFDL) from Allianz SE in a single transaction.

The group has told the competition commission that the proposed combination will not affect market dynamics.

It argued that the insurance markets are "highly fragmented, dynamic, and very competitive" and that none of the parties involved hold significant "market shares or market power" or have any ability or incentive to hinder competition. It also highlighted that the insurance sector is strictly regulated.

"Accordingly, the relevant market definitions may be left open for the purposes of the Proposed Combination, as the Proposed Combination is not likely to cause any appreciable adverse effect on competition in India in any market," the CCI filing said.

What’s Next for Bajaj Finserv & Allianz SE?

The breakup of the 24-year-old joint insurance venture, Bajaj Allianz, was announced in March this year. Bajaj Finserv reported that its Assets Under Management (AUM) grew 28% to Rs 3,98,043 crore as of December 31, 2024, up from Rs 3,10,968 crore a year earlier.

“Given the advantage of single ownership in both companies, we are confident the acquisition will become a big driver of value for our stakeholders in the years to come,” said Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv.

Meanwhile, Germany’s Allianz SE stated that it may reinvest the proceeds from the stake sale into new opportunities in India.

Allianz’s decision to exit follows a decade-long effort to increase its stake in the joint venture with Bajaj. Since 2013, it had reportedly aimed to raise its holding to 49%, but was unable to do so due to regulatory hurdles and Bajaj’s unwillingness to give up control.

In October, Bloomberg reported that Jio Financial Services was in talks with Allianz SE to explore a potential insurance partnership in India, which may include launching both life and general insurance ventures. .