Patanjali Ayurved, 5 others get CCI's nod to acquire 98% stake in Magma General Insurance

A notice to the competition watchdog mentioned that the acquirer proposed to acquire "98.055%" shareholdings of Magma General Insurance on a fully diluted basis by way of share purchase

By  Storyboard18Apr 17, 2025 10:11 AM
Patanjali Ayurved, 5 others get CCI's nod to acquire 98% stake in Magma General Insurance
Patanjali Ayurved to acquire Magma General Insurance

The Competition Commission of India (CCI) has given its nod to Patanjali Ayurved and five other entities to acquire a majority stake in MAgma General Insurance.

The five other entities are SR Foundation, Riti Foundation, RR Foundation, Suruchi Foundation, and Swati Foundation.

A notice to the competition watchdog mentioned that the acquirer proposed to acquire "98.055%" shareholdings of Magma General Insurance on a fully diluted basis by way of share purchase.

According to a report by the PTI agency, the proposed combination is being notified under the green channel route in consonance with section 6(4) of the Competition Act, 2022.

Under the green channel route, if a transaction does not pose any risk of adverse effect on competition, is deemed to be approved on being intimidated by the CCI.

Patanjali Ayurveda, owned by yoga guru Baba Ramdev, is engaged in the manufacturing and marketing of herbal nature-based products, medicines, etc.

After CCI's not, Patanjali Ayurved will assume the role of Magma General Insurance's promoter entity. The deal marks Patanjali's entry into the general insurance market and its diversification into financial services.

"The activities of the parties (including their affiliates) do not exhibit any horizontal overlaps, vertical relationships, or complementary linkages in any of the plausible relevant markets in India," CCI said in its notice.

Magma General Insurance was backed by businessman Adar Poonawalla-owned Sanoti Properties and Rising Sun Holdings Pvt Ltd.

The company offers more than 70 products across retail and commercial categories, such as, motor (car, two-wheeler, commercial vehicles, tractors), health, personal accident, etc. Additionally, it also offers home and commercial products like fire, engineering, liability, marine, etc

First Published on Apr 17, 2025 10:00 AM

More from Storyboard18

Brand Makers

Meta appoints Sandhya Devanathan to lead business across India and Southeast Asia

Meta appoints Sandhya Devanathan to lead business across India and Southeast Asia

Brand Makers

Domino's India reports 31.5% rise in profit to Rs 50 crore in Q4 FY25

Domino's India reports 31.5% rise in profit to Rs 50 crore in Q4 FY25

Brand Makers

Platinum Guild International strengthens leadership; names Vaishali Banerjee & Pallavi Sharma in new roles

Platinum Guild International strengthens leadership; names Vaishali Banerjee & Pallavi Sharma in new roles

Brand Makers

Meta names Benjamin Joe as Regional VP, APAC; succeeds Dan Neary

Meta names Benjamin Joe as Regional VP, APAC; succeeds Dan Neary

Brand Makers

Nation first: Indian travel agencies may face 7-8% loss amid boycott of Turkey and Azerbaijan

Nation first: Indian travel agencies may face 7-8% loss amid boycott of Turkey and Azerbaijan

Brand Makers

Ranveer Allahbadia on Piers Morgan's show: Internet praises influencer, sparks redemption chatter online

Ranveer Allahbadia on Piers Morgan's show: Internet praises influencer, sparks redemption chatter online

Brand Makers

Skyscanner names Bryan Batista as new CEO

Skyscanner names Bryan Batista as new CEO

Brand Makers

Harsh Goenka urges Indians to skip Turkey and Azerbaijan amid Indo-Pak tensions

Harsh Goenka urges Indians to skip Turkey and Azerbaijan amid Indo-Pak tensions