The Competition Commission of India (CCI) has approved the acquisition of shares of Future Generali India Life Insurance Company Limited (FGLIC) by Generali Participations Netherlands N.V (GPN), pursuant to which GPN’s shareholding in FGLIC will stand increased from 49 per cent to up to about 71 per cent.
Increasing stake in three tranches
The Proposed Acquisition relates to an increase in shareholding of an existing shareholder, i.e., Generali Participations Netherlands N.V. (GPN/Acquirer) in Future Generali India Life Insurance Company Limited (FGLIC/Target). GPN proposes to increase its equity stake in FGLIC in three tranches. The first tranche will involve subscribing to equity shares of FGLIC, to be issued by FGLIC through a preferential allotment. The second tranche would involve purchasing all of Industrial Investment Trusts Limited’s (IITL) shareholding of FGLIC. IITL will completely exit FGLIC and will cease to be shareholder of FGLIC.; and the third tranche would involve subscribing to equity shares of FGLIC, to be issued by FGLIC through a preferential allotment, an official release said.
GPN is a wholly-owned subsidiary of Assicurazioni Generali S.p.A (Generali Group), the ultimate parent entity of the Generali group of companies. The Generali Group is a global insurance provider and is present in the Indian life insurance industry in India through FGLIC. GPN in engaged in the provision of life insurance services in India through FGLIC.
FGLIC is a life insurance company engaged in the provision of life insurance services/products in India.
Meanwhile, the competition watchdog has also approved acquisition by GlaxoSmithKline Consumer Healthcare Overseas Limited and GlaxoSmithKline Consumer Healthcare UK Trading Limited (Acquirers) of shareholding in GlaxoSmithKline Asia Private Limited (GSKAPL—Target).
The proposed combination involves collective acquisition of 100 per cent shares of the Target by the Acquirers, another official release said.
Further, prior to the proposed combination, GSKAPL will acquire the trademarks pertaining to “Iodex” and “Ostocalcium” brands in India along with the legal, economic, commercial and marketing rights of such brands and other associated assets (GSK Consumer Brands) from GlaxoSmithKline Pharmaceuticals Limited.
GlaxoSmithKline Consumer Healthcare Overseas Limited is a wholly-owned subsidiary of GlaxoSmithKline Consumer Healthcare Holdings (No.2) Limited (GSK CH HoldCo). It is a part of the overall GlaxoSmithkline (GSK) group and its principal activity is to act as an investment holding company for GSK CH HoldCo and its subsidiaries.
GlaxoSmithKline Consumer Healthcare UK Trading Limited is a part of the overall GSK group and is a wholly-owned subsidiary of GSK CH HoldCo. It is engaged in the distribution and sale of consumer healthcare products, manufacturing, marketing, providing management services to the consumer healthcare group and providing research and development services to other consumer healthcare companies within the GSK group.
GSKAPL is a consumer healthcare company that is engaged in the marketing and distribution of oral healthcare products under various brand names such as Sensodyne, Parodontax, Polident and over-the-counter medicines products under the brand names such as Crocin, ENO.