360 ONE Private Equity Fund and Bharti Life Ventures Private Ltd (BLVPL) have submitted a combination notice to the Competition Commission of India (CCI) for approval of a proposed transaction involving Bharti AXA Life Insurance Company Ltd (Bharti AXA Life)
As per the filing, 360 ONE, through its schemes or affiliates, will initially acquire equity shares of Bharti AXA Life from BLVPL. Subsequently, both 360 ONE and BLVPL will subscribe to additional equity shares in Bharti AXA Life.
360 ONE is looking to acquire a 15 per cent stake in Bharti AXA Life Insurance through this deal.
The transaction, categorised as an acquisition under Section 5(a)(ii) of the Competition Act, 2002, is expected to strengthen Bharti AXA Life’s capital structure.
360 ONE Private Equity Fund is a SEBI-registered Category II Alternative Investment Fund investing across sectors in India and globally. Its investment manager, 360 ONE Alternates Asset Management Ltd (AAML), is a wholly-owned subsidiary of 360 ONE WAM Ltd.
BLVPL is a holding company within the Bharti Group, which owns Bharti AXA Life. Bharti AXA Life Insurance Company Ltd (Bharti AXA Life), a private life insurance provider with a nationwide presence of 212 branches.
The parties maintain that the transaction does not create any competition concerns, as 360 ONE and Bharti Group do not have direct horizontal overlaps with Bharti AXA Life. However, some of their portfolio companies are engaged in distributing life insurance products, creating a vertical linkage between Bharti AXA Life as a life insurance provider and these entities as distributors.
Despite this, the parties assert that their combined market presence remains minimal and the deal will not significantly alter the competitive dynamics in India’s life insurance and distribution sectors. They have requested that the relevant market definitions be left open, given the negligible impact of the transaction.
The transaction is subject to CCI’s approval, which will assess whether it may lead to any appreciable adverse effect on competition. If cleared, the investment by 360 ONE and BLVPL could enhance Bharti AXA Life’s financial position, potentially allowing it to expand its market reach and service offerings. With increasing private equity interest in India’s insurance sector, this proposed deal highlights a growing trend of strategic capital infusion into insurance firms to drive growth and innovation, economy watchers said.
In March 2024, BLVPL acquired AXA’s 49 per cent stake in Bharti AXA Life Insurance, thereby gaining full ownership of the company. BLVPL is equally owned by Bharti Enterprises Holdings Pvt Ltd and Bharti Overseas Private Limited, entities fully controlled by the Mittal family.
