India’s competition regulator has approved Generali’s acquisition of a stake in its joint venture with Future Enterprises.
As per the deal signed in January this year, the Italian insurer’s wholly-owned subsidiary Generali Participations Netherlands will acquire a 25% stake in Future Generali India Insurance (FGII).
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By GlobalDataThe deal, valued at €145m, will increase Generali’s stake in FGII from 49% to approximately 74%.
The Competition Commission of India’s clearance comes as a relief for Future Enterprises, which has been engaged in a legal battle with Amazon over the sale of its retail operations to India’s Reliance.
Last month, a city court blocked the deal after a group of bondholders challenged it citing Future Enterprises’ entities had defaulted.
However, last week, the Bombay High Court set aside the city court’s order and cleared the deal.
Future Enterprises plans to use the proceeds from the sale to support its retail operations that took a severe hit during Covid-19-induced lockdowns.
Meanwhile, speaking in a post result analyst call, Generali CEO Philippe Donnet said that he was “confident that it [FGII deal] is going to happen”.
Along with FGII, Generali had also brokered a deal to increase its stake in Future Generali India Life (FGIL) to capitalise on the growth opportunities offered by the Indian market.
The news comes alongside Generali’s results for 2021, during which the insurer reported net result of €2.85bn. The figure marks a 63.3% growth compared to net result of €1.74bn in 2020.