New Delhi: Competition Commission has approved Japanese insurer Nippon Life's additional 23 per cent stake purchase plan in Reliance Life Insurance in a deal worth Rs 2,265 crore.
Once the deal is complete, Nippon Life Insurance would have 49 per cent stake in the company, the maximum ownership allowed for a foreign player in a domestic private insurer.
With the new shareholding structure, the name of the company would be changed to Reliance Nippon Life Insurance Company Ltd.
Nippon Life would increase the stake in Reliance Life to 49 per cent for Rs 2,265 crore. With this, the company's total investment would be Rs 8,630 crore for 49 per cent stake each in life insurance and asset management business.
For the deal, Nippon Life Insurance and Reliance Life Insurance had entered into a share purchase agreement in November. The pact was between Reliance Capital, Management Services, Nippon Life and Reliance Life Insurance.
Nippon has already invested Rs 3,303 crore for 49 per cent stake in Reliance Capital Asset Management, thereby taking its total investment to Rs 8,630 crore.
Parliament, in March 2015, had passed the Insurance Laws (amendment) Bill, allowing foreign entities to increase their stake in private sector insurance companies to 49 per cent from 26 per cent.
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