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The Competition Commission authorized LIC's proposed repurchase of up to 51% interest in IDBI Bank, which is debt-laden.
This transaction would help the insurance giant enter the banking sector and create commercial synergies despite the tensions highlighted by the IDBI bank. balance sheet.
In a tweet on Tuesday, the Fair Trade Regulatory Authority announced that it had approved "the acquisition of 51% stake in IDBI Bank Ltd. by Life Insurance Corporation of India".
Mergers and acquisitions exceeding a certain threshold require the approval of the Competition Commission of India (ICC), which monitors unfair trade practices in all sectors.
In August, the government approved the project of acquisition by the LIC of a stake of up to 51 percent in the bank. .
This agreement would allow the insurer to have access to approximately 2,000 branches of the bank through which it can sell its products.
Last month, the LIC announced a takeover bid for 26% of the share capital of the group's shareholders.
The open offer, in which the shares must be acquired at the price of 61.73 rupees, would begin on 3 December.
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