The Competition Commission of India (CCI) has approved the Zurich Insurance Company Ltd’s acquisition of 70 percent stake in Kotak Mahindra General Insurance Company Ltd (KMGIC).

In November last year, the Switzerland-based Zurich Insurance Group had agreed to acquire a 51 percent stake in KMGIC for about ₹4,051 crore through a combination of fresh capital infusion and share purchase. 

This was billed as the largest investment by a global strategic insurer in an Indian non-life insurance company. 

The deal, which is expected to be completed by June 30, 2024, provided that Zurich Insurance besides the 51 per cent intends to acquire an additional 19 per cent stake within three years of closing the transaction, which will take its holding in the Indian general insurer to 70 per cent.

Once, Zurich Insurance acquires the 51 per cent stake, KMGIC will cease to be a subsidiary of Kotak Mahindra Bank. At present, the bank holds 100 per cent stake in general insurance firm. 

The proposed transaction valued KMGIC at ₹7,943 crore ($955 million) on a post-money valuation. 

“CCI approves the acquisition of 70 per cent stake in Kotak Mahindra General Insurance Company Ltd by Zurich Insurance Company Ltd,” said a CCI post in X, formerly Twitter.

Meanwhile, in another transaction, CCI has approved the proposed combination involving acquisition of 100 per cent shareholding of Interise Investment Managers Limited by the CPPIB India Private Holdings Inc, Allianz Infrastructure Luxembourg II SARL and Ontario Inc.

Competition watchdog has also approved the acquisition of certain shareholding of Shadowfax Technologies Private Limited by NewQuest Asia Fund IV (Singapore) Ltd.