The Competition Commission has given its approval for Kotak Mahindra Bank buying out British partner Old Mutual’s 26 per cent stake in former’s life insurance arm for Rs 1,293 crore. In a tweet, the Competition Commission of India said it has approved “acquisition by Kotak Mahindra Bank of 26 per cent shares of Kotak Mahindra Old Mutual Life Insurance Ltd from Old Mutual Plc”. The Mumbai-based Kotak Mahindra Old Mutual Life Insurance is a joint venture between Kotak Mahindra Bank (KMB), its affiliates, and Old Mutual Plc.
As per the notice submitted to the regulator, Old Mutual Plc holds 26 per cent of the total paid-up share capital of the life insurance firm and the remaining 74 per cent is directly or indirectly held by KMB. As part of the deal, Kotak Mahindra Bank will be paying Old Mutual Rs 1,292.7 crore for acquiring 26 per cent stake in the joint venture.
KMB, headquartered in Mumbai, offers banking and financial services and has presence in New York, London, Mauritius, Singapore, Dubai and Abu Dhabi directly or through its subsidiaries. Old Mutual Plc is an international long-term savings, protection and investment group.