Bajaj Group has completed one of the largest deals in India's insurance sector. German insurance company Allianz SE has sold its shares to the Bajaj Group. The German company has sold 23 per cent shares each in both life and general insurance to the Bajaj Group. The total value of this deal is ₹21,390 crore. The transfer of the remaining 3 per cent shares will also be completed within the next few months.
Bajaj Finserv, Bajaj Holdings and Investment Limited, and Jamnalal Sons Private Limited have jointly acquired these shares from Allianz. Bajaj Finserv announced this in a statement. Of this, ₹12,190 crore has been paid for Bajaj General Insurance shares and ₹9,200 crore for Bajaj Life Insurance shares.
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Bajaj Finserv Chairman and Managing Director Sanjiv Bajaj said this share acquisition will not affect the daily operations of the insurance companies or the interests of policyholders and business partners. Sanjiv Bajaj said, "This acquisition will make us strategically more flexible. It will help us enter new markets, launch new products, and expand business scope. We are optimistic that insurance coverage in India will grow rapidly over the next two decades."
Bajaj Finserv President (Insurance and Special Projects) S. Srinivasan said the entire amount for this deal has been paid from Bajaj Group's own funds. No loans have been taken.
After this deal, Bajaj Group's ownership in both insurance companies has increased from 74 per cent to 97 per cent. Bajaj Finserv's stake alone is now 75.01 per cent. The remaining 3 per cent shares held by Allianz will be transferred through a share buyback within the next few months. These shares will be purchased at the price determined at the time of the agreement.
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Once the remaining share acquisition is completed, Bajaj Finserv's stake will increase to approximately 77.3 per cent. Bajaj Holdings and Investment will hold 18.1 per cent shares. The remaining shares will be with Jamnalal Sons. Meanwhile, in a separate statement, Allianz said it wants to complete the process of selling the remaining 3 per cent shares by June 2026.
This joint venture between Bajaj Group and Allianz began in 2001. Allianz said that although the partnership was successful, its operations in India were limited due to being a minority partner. The decision to exit this investment was made after amicable discussions with the Bajaj Group.
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