Money & Banking

CCI okays PNB-MetLife India stake buy deal

PTI New Delhi | Updated on January 03, 2013 Published on January 03, 2013

The CCI said the PNB-Metlife India deal would not have any adverse impact on the competition scenario.

Fair trade regulator, Competition Commission of India (CCI) has approved 30 per cent stake purchase by the state-owned Punjab National Bank (PNB) in MetLife India Insurance Company.

The CCI said the deal would not have any adverse impact on the competition scenario.

In its order on December 26, the CCI noted that operations of PNB and MetLife India are not similar or identical.

“Although PNB provides services to MetLife India as a distribution agent, the share of MetLife India in the business of life insurance is relatively insignificant and is not likely to raise any adverse effect on competition in India,” the CCI said.

In 2011, PNB had announced picking up of 30 per cent stake or about 60.38 crore shares in MetLife India for an undisclosed amount.

Besides, the two entities had reached an agreement following which PNB is acting as an agent of MetLife India for the distribution of its insurance products.

MetLife India is a joint venture between MetLife International (an affiliate of US-based MetLife Inc) and group of Indian investors.

Both PNB and MetLife India had approached the fair trade regulator for approval on December 7, 2012.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on January 03, 2013
This article is closed for comments.
Please Email the Editor