RIL calls off acquisition of Bharti AXA
November 25th, 2011 - 8:43 pm ICT by IANSMumbai, Nov 25 (IANS) Mukesh Ambani led-Reliance Industries (RIL) Friday said it has called off the proposed acquisition of Bharti Group’s 74 percent stake in Bharti AXA insurance companies.
Bharti Enterprises, a subsidiary of Bharti Group, had announced in June its intention to sell its stake in the insurance businesses to RIL, saying that financial services ventures did not fit into Bharti’s long-term growth plans.
“The contemplated acquisition of Bharti’s shareholding of 74 percent in Bharti AXA Life Insurance and Bharti AXA General Insurance are being jointly terminated as a result of the parties being unable to reach agreement on the long term vision and joint governance of the ventures,” RIL said in a statement.
In financial year 2011, Bharti AXA Life collected premiums of Rs.7.9 billion and Bharti AXA General Insurance collected gross direct premiums of Rs.5.5 billion.
The deal was part of the Mukesh Ambani-led group’s foray into the financial services space.
The company currently has an equal joint venture with US financial services giant D E Shaw, D E Shaw India Financial Services, which is expected to start operations in January. It is eyeing the entire spectrum of financial services from mutual funds to running for a banking license.
- Bharti to exit from financial services joint venture with AXA - Jun 10, 2011
- Naming of RIL's insurance venture will be interesting - Jun 11, 2011
- Bharti AXA to infuse Rs.200 crore additional capital in 2012 - Mar 05, 2012
- Reliance Capital pact with Nippon in areas beyond insurance - Sep 01, 2011
- It is a status quo budget with routine announcements: Insurance sector (Lead) - Mar 16, 2012
- IRDA fines two Bharti Axa insurance companies - Aug 27, 2010
- Reliance, BP form joint venture for gas business - Nov 18, 2011
- Reliance raises $1 billion through overseas bond issue - Feb 10, 2012
- Regulator's nod for Reliance Capital's 26 percent stake sale to Nippon - Sep 14, 2011
- Mukesh Ambani's RIL signs $20 billion deal with BP - Feb 21, 2011
- Reliance Industries raises $2 billion loan - May 09, 2012
- BP to buy 30 percent stake in RIL oil blocks for $7.2 bn - Feb 21, 2011
- BP expects Krishna Godavari gas output to rise - Sep 28, 2011
- Reliance Industries to invest in Network 18, TV18 - Jan 03, 2012
- Reliance Life gets central bank nod for stake sale to Nippon - Sep 30, 2011
Tags: axa, axa insurance, axa life insurance, bharti axa life insurance, bharti enterprises, bharti group, direct premiums, e shaw, financial services giant, foray, general insurance, insurance businesses, insurance companies, joint venture, long term vision, mukesh ambani, mumbai, reliance industries, ril, shareholding