The proposed combination relates to acquisition of 100% shareholding in L&T General Insurance Company Limited (“LTGI”) by HDFC Ergo General Insurance Company Limited (“HDFC Ergo”) from Larsen and Toubro (L&T). Subsequently, HDFC Ergo shall be merged with its then 100% subsidiary LTGI.
HDFC Ergo is engaged in providing housing finance, finance for commercial real estate, general insurance services, etc. LTGI is engaged in providing general insurance services. It offers a range of general insurance products, with product offerings spanning across auto, business, home and health insurance.
CCI noted that HDFC Ergo and LTGI have a combined market share of less than 5% in the market for general insurance services and less than 10% each in market segments of fire, marine, motor, health and other insurance. Further, it was noted that LTGI has limited presence in all segments and the incremental market share resulting from the proposed combination is insignificant (between 0 to 5 percent).
CCI accepted the modification proposed by the parties to reduce the non-compete period from for L&T from 5 years to 3 years. The proposed combination has been approved under Section 31 of the Act.
(Source: Order dated August 01, 2016. For full text see CCI website)