HDFC Bank Acquires majority stake in Apollo Munich Health Insurance for Rs 1,495.81 crore

The mortgage lender Housing Development Finance Corporation (HDFC) has announced the completion of the acquisition of majority stake (51.16%) in Apollo Munich Health Insurance Company for Rs. 1,495.81 crore.
The acquisition was approved by the Competition Commission of India (CCI), the Reserve Bank of India (RBI), and the Insurance Regulatory and Development Authority of India (IRADI) by 01 January 2020.
Controlling Stake: HDFC has acquired 50.80% share of Apollo Hospital Group in Apollo Munich Health Insurance Company (Apollo Munich) for Rs 1485.14 crore.
- It has also acquired 0.36% shareholding held by few employees for Rs 10.67 crore.
Name of new Entity: Subsequently, the Apollo Munich has been renamed as HDFC ERGO Health Insurance and will operate as a subsidiary of HDFC.
MD and CEO: Anuj Tyagi, Executive Director and Chief Business Officer at HDFC ERGO Health Insurance has been appointed as the new MD and CEO of the new entity HDFC ERGO Health Insurance. However, the appointment is subject to approval of IRDAI.
Future plans: HDFC will merge HDFC ERGO General with ERGO Health and will soon apply to seek approval for the same to the National Company Law Tribunal (NCLT.
- Post merger, the merged entity will be the second largest private insurer in accident and health segment in the country”.