Bajaj is terminating its now 24-year-old three way partnership with German monetary providers agency Allianz SE by buying the latter’s stake of their insurance coverage companies.
The three way partnership will formally get terminated upon the completion of the primary acquisition tranche of at the very least 6.1 per cent and the reclassification of Allianz from being a Promoter to Investor.(Representational Picture/Pexel)
These insurance coverage companies are Bajaj Allianz Common Insurance coverage Firm (BAGIC) and Bajaj Allianz Life Insurance coverage Firm (BALIC).
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For this, Bajaj Finserv signed Share Buy Agreements (SPAs) to purchase Allianz’s 26 per cent stake within the companies to achieve full possession from the present 74 per cent Bajaj owns.
The three way partnership will formally get terminated upon the completion of the primary acquisition tranche of at the very least 6.1 per cent and the reclassification of Allianz from being a Promoter to Investor, introduced the corporate in its official assertion on Monday, March 18, 2025.
As soon as the joint ventures are terminated, the Bajaj Group and Allianz purpose to independently do enterprise in India.
Nevertheless, this deal can also be topic to regulatory approvals, together with approvals from the Competitors Fee of India (CCI) and the Insurance coverage Regulatory and Improvement Authority of India (IRDAI).
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The agreed consideration for the 26 per cent stake in BAGIC and BALIC is Rs. 13,780 crore and Rs. 10,400 crore respectively.
The phrases of the settlement suggest that Bajaj Finserv Ltd. will purchase roughly 1.01 per cent, Bajaj Holdings and Funding Ltd. roughly 19.95 per cent and Jamnalal Sons Pvt. Ltd. roughly 5.04 per cent, aggregating to 26 per cent in every of the insurance coverage firms.
After the acquisition, Bajaj Finserv’s stake shall be 75.01 per cent in each the businesses.
Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, stated, “Together with Allianz, we have built two of the strongest insurance companies in India with a combined premium exceeding Rs. 40,000 crore, while maintaining industry-best solvency margins.”
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“We remain committed to creating better access to insurance in India, greater financial resilience, and superior experience for our customers,” he added. “Given the benefit of a single possession in each firms, we’re assured that the acquisition will grow to be an enormous driver of worth for our stakeholders within the years to come back.”
Bajaj Finserv and Allianz have additionally entered into agreements that may guarantee continuity of reinsurance and different providers through the transition, the corporate stated.