After announcing the end of its 24-year joint venture with Bajaj group, the Allianz SE is now making efforts for a new joint venture with Mukesh Ambani-led Jio Financial Services, a report by Economic Times said. Quoting people in the know, the report suggested that it is Allianz’s second attempt at the domestic life and general insurance market.
Allianz will sell its 26% share in Bajaj Allianz General Insurance Co and Bajaj Allianz Life Insurance Co to its Indian partner for $2.8 billion, the report said. The payment could be made in several installments.
ALSO READBajaj Finserv buys out Allianz from life, general insurance JVs
The report further suggested that the discussions between Allianz and Reliance Industries (RIL), which owns Jio Financial, have been happening for months now. The discussions picked up speed after it was revealed last October that Allianz was thinking about leaving the partnership, and have become more serious in recent weeks, one of the persons was quoted as saying in the report.
Allianz to step down as promoter?
The ET report said that an official announcement about the Allianz-Jio partnership will be made once they get approval from the regulators, such as the CCI and the IRDAI. But Allianz will need to step down as a promoter of the two current ventures first.
ALSO READJio Financial Services to acquire 7.9 crore shares of Jio Payments Bank
However, it’s clear what their plans are, said an executive. The report further quoted sources saying that the company has been encouraged to speed up their exit and finalise a new deal, as Jio also needs to expand its financial services and has been looking for big global partners.
» Read More
