Although PNB provides services to MetLife India as a distribution agent, the share of MetLife India in the business of life insurance is relatively insignificant and is not likely to raise any adverse effect on competition in India says CCI
New Delhi: Fair trade regulator Competition Commission of India (CCI) has approved 30% stake purchase by state-owned Punjab National Bank (PNB) in MetLife India Insurance Company, reports PTI.
CCI said the deal would not have any adverse impact on the competition scenario.
In its order on 26th December, CCI noted that operations of PNB and MetLife India are not similar or identical.
"Although PNB provides services to MetLife India as a distribution agent, the share of MetLife India in the business of life insurance is relatively insignificant and is not likely to raise any adverse effect on competition in India," CCI said.
In 2011, PNB had announced picking up of 30% stake or about 60.38 crore shares in MetLife India for an undisclosed amount.
Besides, the two entities had reached an agreement following which PNB is acting as an agent of MetLife India for the distribution of its insurance products.
MetLife India is a joint venture between MetLife International (an affiliate of US-based MetLife Inc) and group of Indian investors.
Both PNB and MetLife India had approached the fair trade regulator for approval on 7 December 2012.
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