The Competition Commission of India (CCI) has approved the acquisition of a 98.055% stake in Magma General Insurance by Patanjali Ayurved and five other entities.
In addition to Patanjali Ayurved, there are five foundations involved in the deal, namely S R Foundation, Riti Foundation, RR Foundation, Suruchi Foundation and Swati Foundation.
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“The proposed combination is being notified under the green channel route in consonance with section 6(4) of the Competition Act, 2002,” the CCI notice said.
The commission noted that the concerned parties, including their affiliates, have no horizontal, vertical or complementary linkages in any plausible relevant market in India.
Patanjali and the foundations consider the deal a lucrative investment opportunity and look to benefit from Magma’s “growth prospects” and “established presence”, CCI further said.
As for Magma, the deal unlocks prospects for growth, “innovation” and market expansion, the regulator added.
Magma operates in the general insurance sector, offering products across engineering, fire, health, liability, marine, motor and other miscellaneous categories.
Set up in 2006, Patanjali is engaged in the production and sale of herbal and nature-based products, medicines and other fast-moving consumer goods through its own outlets and other retail channels.
Under the green channel route, a transaction which does not pose any risk of an appreciable adverse effect on competition is deemed to be approved on being intimated to the competition watchdog.
