Reliance calls off Bharti-AXA Insurance deal

Saturday 26, November, 2011 Reliance Industries (RIL) has scrapped its plan to acquire Bharti's stake in the life and general insurance joint ventures with French insurer AXA. According to two independent sources, it is a direct fallout of a due diligence report conducted by RIL following the announcement of the deal in June. The due diligence report had highlighted some issues regarding compliance standards and found the valuations expensive. This played a key role in RIl decision to call off the deal. RIL and the two insurance companies - Bharti AXA Life Insurance Co and Bharti AXA General Insurance Co - in separate statements said the companies had jointly decided to terminate the deal. In June, AXA and RIL said they had reached an understanding where the latter, along with its associate Reliance Industrial Infrastructure (RIIL), will acquire Bharti's 74 per cent stake in both the ventures. While RIL decided to acquire 57 per cent, RIIL planned to buy the remaining 17 per cent of Bharti's stake in the two insurance companies.

[ Back to News Room ]

Back to Top^