The announcement came on 3rd September that HDFC Life would now be acquiring Exide Life Insurance for Rs 6,687 crore, which also makes it the biggest insurance deal in the country. Exide Life will now be merged into HDFC Life.
The deal is now in its advanced stages and has been approved by the directors of both firms. “The board of directors of HDFC Life Insurance Company (HDFC Life), Exide Industries Ltd (Exide Industries) and Exide Life Insurance Company Ltd (Exide Life)… approved the transaction involving the sale of Exide Life Insurance to HDFC Life,” HDFC Life said in a release.
The acquisition is expected to be completed by June 30, 2022, and the completion of the acquisition is subject to customary conditions such as receipt of regulatory and other such approvals. Once the deal is completed Exide Life Insurance will be merged into HLIC, the process for which will be started after the completion of the acquisition.
“We believe that this amalgamation can result in value creation for customers, employees, shareholders and distribution partners. It gives us an opportunity to realise synergies arising out of complementary business models, and further bolster our proprietary distribution network,” said Vibha Padalkar, MD and CEO of HDFC Life.
Various parties have been involved in this deal, making it a success for HDFC Life. The meetings and discussions were held taking into consideration the opinions of these people. AZB & Partners was the legal advisor to HDFC Life while Trilegal served as the legal advisor to Exide Life and Exide Industries.
Deloitte Touche Tohmatsu India LLP and Rashmi Shah FCA (Registered Valuer) were hired as valuers for the transaction by HDFC Life, and Desai Haribhakti & Co, Chartered Accountants and S Sundararaman (Registered Valuer) were appointed as valuers by Exide Industries.
The advantages come in abundance for the users and audience as well. Because of this acquisition happening, the insurers are benefitted as they get access to a wider bouquet of products and service touch-points.
At the same time, Employees and agents will benefit from a larger, stronger organisation. This transaction between HDFC Life and Exide Life is a great move for both the companies as Exide Life will complement HDFC’s geographical presence. In the past, there have been reports of HDFC Life intending to acquire Max Life Insurance, but the deal did not pass through the regulatory hurdles.