Switzerland-based Zurich Insurance to acquire 70% stake in India's Kotak General for Rs 5,560 crore

Switzerland-based Zurich Insurance is set to acquire a 70% stake in India's Kotak Mahindra General Insurance, a subsidiary of the private sector lender Kotak Mahindra Bank, for Rs 5,560 crore in a single transaction.

The acquisition marks a departure from the initially planned phased acquisition strategy announced in November 2023, which involved a 51% stake purchase followed by an additional 19% stake acquisition over three years.

Kotak Mahindra Bank informs in an exchange filing

According to an exchange filing, The parties involved, including Kotak Mahindra Bank, Zurich Insurance, and Kotak General, have mutually agreed to consolidate the acquisition into a single tranche. 

"We refer to our disclosure dated November 2, 2023 in respect of the proposed acquisition of the shares of Kotak Mahindra General Insurance Company Limited (“Kotak General”) by Zurich Insurance Company Ltd (“Zurich”), by way of initial acquisition of 51% of the share capital through a combination of capital infusion and share purchase, followed by a subsequent acquisition of additional stake of 19% within a period of 3 years from the initial acquisition to take Zurich’s shareholding to 70% of the share capital of Kotak General (“Proposed Acquisition”)."

"The parties to the aforesaid transaction, viz., the Bank, Zurich and Kotak General, have mutually agreed that Zurich will acquire a 70% stake in Kotak General by way of a combination of primary and secondary acquisitions in a single tranche, for a total consideration of approximately INR 5,560 Crore, instead of the proposal announced in our earlier disclosure (“Proposed 70% Acquisition”)," the bank added.

Regulatory approvals in place

The proposed acquisition is subject to customary conditions, including receiving necessary regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI).

Notably, the Competition Commission of India (CCI) granted its approval for this transaction in February 2024.

Join our new WhatsApp Channel for the latest startup news updates