Thursday, November 10, 2022
HomeInsurance LawAditya Birla begins talks with Nippon Life for all times insurance coverage...

Aditya Birla begins talks with Nippon Life for all times insurance coverage JVs merger


Aditya Birla Capital has initiated discussions with Japan-based Nippon Life for a possible merger of their respective insurance coverage ventures, new company PTI reported.

The proposed deal could be topic to completion of a 51% stake acquisition in Reliance Nippon Life Insurance coverage (RNLIC) by Aditya Birla Capital.

At present, Nippon Life Company holds a 49% stake in Reliance Nippon Life Insurance coverage Firm.

RNLIC is a unit of cash-strapped Reliance Capital, which is present process course of for the insolvency decision.

The talks between Aditya Birla Capital and Nippon Life had been initiated following the launch of sale course of for a 51% stake in Reliance Nippon Life by a court-appointed administrator of Reliance Capital.

Nippon Life is mulling potential merger between Reliance Nippon Life and Birla Solar Life Insurance coverage, part of Aditya Birla Capital, the report added.

As per the rules of Indian Insurance coverage Regulatory and Growth Authority (IRDAI), an organization is banded from floating two non-life or life insurance coverage entities.

Because of this, Birla Solar Life could be merged with Reliance Nippon Life Insurance coverage within the occasion of its promoters chosen as profitable bidder through the RCL decision course of.

Moreover, Nippon Life’s stake within the merged entity shall be lowered from the present 49% to about 15%. This shall be based mostly the 2 insurance coverage entities’ valuation.

The final submission date has been set at 28 November 2022 for binding bids for Reliance Capital and its subsidiaries.



RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments