The Competition Commission of India (CCI) has announced that it has approved the proposed acquisition of 24.91% shareholding in Future Generali India Insurance (FGIICL) and 25.18% shareholding in Future Generali India Life Insurance (FGILICL) by Mumbai-headquartered Central Bank of India (CBI).
The stakes in both entities are being acquired under the Insolvency and Bankruptcy Code (IBC) process. They are to be acquired through a bid/resolution plan submitted by CBI under the bankruptcy rules. The bid amounted to INR5.08bn ($60.5m). The Committee of Creditors (CoC) of FEL had declared CBI as the successful bidder for the stakes.
The two insurers are units of debt-ridden Future Enterprises Ltd (FEL), which is currently under the corporate insolvency resolution process. FEL owns a 25% stake in FGIICL and a 33% stake in FGILICL. Both insurers are joint ventures with Italy’s global insurance group Generali.
CBI is a state-owned commercial bank. FGIICL is a general insurance company. It provides personal insurance, commercial insurance, social & rural insurance, etc. FGILICL is a life insurance company. It provides savings insurance, investment plans (ULIP), term insurance plans, health insurance plans, child plans, retirement plans, rural insurance plans, and group insurance plans.