New Delhi: In what could be called the biggest merger of recent times in India, Max Life Insurance and Max Financial Services together are merging with HDFC Standard Life Insurance; together making a whooping capital of around Rs 60,000 crore therefore, making it the country’s biggest private insurance entity.
In a press release, the companies said they had entered into exclusive and confidential agreement to carry out due diligence for the biggest merger.
As per sources the Board of Directors confirmed about the standstill agreement to evaluate a potential combination through the merger.
However, few analysts expressed their views on the merger that the structure of the deal may be complicated given the nature of shareholdings in each company like HDFC owns 61.63% and Standard Life own 35 % in HDFC Life, and on the other side, the Max Life is 68 % owned by Max Financial and 26 % by Sumitomo Mitsui while Axis Bank owns 6%.
On the other side, Max Financial Services said that the agreement provides for a mutually agreed exclusivity period for due diligence and discussions between the parties in relation to the proposed transaction. The proposed arrangements would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective High Courts/NCLT, and other third party approvals, as may be applicable.