Reliance Capital Asset Management (RCAM) today said that it has completed the regulatory clearance process for the sale of additional stake to Japan’s Nippon Life, after getting approvals from CCI and EPFO.

The deal is now expected to close by next week.

Nippon Life Insurance, which manages $500 billion in assets and is among the largest in the world, had agreed in November 2014 to increase its stake in RCAM from the existing 26 per cent to 49 per cent in multiple tranches, subject to regulatory approvals.

The company has now received approvals from the Competition Commission of India (CCI) and the Employees Provident Fund Organisation (EPFO), thus completing the regulatory approval process for this transaction.

RCAM runs Reliance Mutual Fund, the country’s leading fund house, and is a part of Anil Ambani-led Reliance Group’s financial services arm Reliance Capital.

Reliance Capital CEO Sam Ghosh said in a statement that the approval from CCI and EPFO for this transaction would help RCAM expand its reach and offer superior returns and innovative products to its customers and investors.

“We look forward to completing this transaction by next week,” he added.

The boards of both the companies — Nippon Life Insurance and RCAM — have already approved the additional stake sale to the Japanese partner.

Nippon will be investing an aggregate value of Rs 657 crore ($108 million) to acquire an additional stake of 9 per cent in RCAM in the first tranche, to reach a 35 per cent stake. The transaction pegs RCAM’s full valuation at Rs 7,300 crore ($1.2 billion).

Subsequently, Nippon will have an option to increase its stake further by an additional 14 per cent, to reach 49 per cent, in tranches.

RCAM is the largest asset manager in India managing Rs 2,29,060 crore ($36.9 billion) as on December 31, 2014, across mutual funds, pension funds, managed accounts and offshore funds.

Nippon Life is already a strategic partner in RCAM and had acquired a 26 per cent stake at an aggregate value of Rs 1,450 crore ($240 million) in 2012. The transaction pegged the total valuation of RCAM at approximately Rs 5,600 crore ($920 million).

The 125-year-old Nippon Life is the world’s seventh largest life insurer and the biggest private life insurer in Asia and Japan.