RBI approves Zurich Insurance's acquisition of 70% stake in Kotak Mahindra Insurance

5 Jun 2024 , 03:45 PM

The Reserve Bank of India has approved Zurich Insurance Company’s proposed acquisition of a 70% stake in Kotak Mahindra General Insurance Company. The deal is valued at ₹5,560 crore. Kotak Mahindra Bank announced this in an exchange filing on June 5.

Kotak General is wholly owned by Kotak Mahindra Bank, and the approval was granted on June 4. The bank confirmed that all necessary approvals have been obtained and the transaction will be completed “upon fulfillment of other conditions precedent.”

In February, Kotak Mahindra Bank announced Zurich Insurance’s plan to acquire a 70% stake in the insurance company for ₹5,560 Crore in a single tranche.

Zurich Insurance had previously announced its intention to acquire a 51% stake in November 2023, followed by an additional 19% stake later on, through a combination of fresh growth capital and share purchase. On February 6, the Competition Commission of India granted approval for the Zurich-based firm to acquire a 70% stake in Kotak General.

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