The Competition Commission of India has approved Max India’s proposed corporate restructuring plan. In this restructuring plan the company will be split through a de merger into three separate listed firms, which also includes one for life insurance.
The proposed demerger plan “is not likely to have an appreciable adverse effect on competition in India,” the fair trade regulator said
After the completion of de merger the company Max India is proposed to be named as Max Financial Services Ltd and it would focus on the life insurance activity only through its 72.1% stake in Max Life insurance.
The Commission also said, the proposed deal, “will not result in any change in control over the demerger entities or the competitive landscape of the markets in which they operate”.
The deal also involves transfer of shareholding of Max in certain entities from which it operates different businesses to its subsidiaries – Taurus Ventures Ltd and Capricorn Venture Ltd.
“As a result, pursuant to the proposed combination, Max, Taurus and Capricorn will have the same shareholding structure as the existing shareholding structure of Max,” the order said.