CCI approves PNB’s 30% stake buy in MetLife India

CCI approves PNB’s 30% stake buy in MetLife IndiaPunjab National Bank (PNB) on Friday gained competition watchdog’s approval for its 30 per cent stake acquisition in MetLife India Insurance.

The Competition Commission of India (CCI) approved the transfer of 60 crore equity shares from MetLife to PNB, saying the businesses offered by MetLife and PNB were not similar and identical, and therefore would not hurt competition in the market.

Approving the transaction, CCI said, “Although PNB provides services to MetLife as a distribution agent, the share of MetLife in the business of life insurance is relatively insignificant and is not likely to raise any adverse effect on competition in India.”

Government-run PNB had picked up the stake in MetLife India for an undisclosed sum in 2011, and both PNB and MetLife India had approached the fair trade regulator CCI for approval in December last year.

MetLife India, which offers life insurance products, is a joint venture (JV) among US-based MetLife International, IGE India, J&K Bank, M. Pallonji Group and Chintalapati Holdings. Indian stakeholders own 74 per cent skate in the JV, while MetLife International owns the remaining 26 per cent stake.

Insurance Regulatory & Development Authority (IRDA) had approved the share transfer deal in October.