Delhi 18 march 2025 (Punjab Khabarnama Bureau): Bajaj is terminating its now 24-year-old joint venture with German financial services firm Allianz SE by acquiring the latter’s stake in their insurance businesses.
These insurance businesses are Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC).
For this, Bajaj Finserv signed Share Purchase Agreements (SPAs) to buy Allianz’s 26 per cent stake in the businesses to gain full ownership from the current 74 per cent Bajaj owns.
The joint venture will officially get terminated upon the completion of the first acquisition tranche of at least 6.1 per cent and the reclassification of Allianz from being a Promoter to Investor, announced the company in its official statement on Monday, March 18, 2025.
Once the joint ventures are terminated, the Bajaj Group and Allianz aim to independently do business in India.
However, this deal is also subject to regulatory approvals, including approvals from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI).
Summary: Bajaj is set to fully own its insurance businesses by acquiring Allianz’s 26% stake, marking the end of their 24-year joint venture.