Bajaj Finserv has received legal counsel from Shardul Amarchand Mangaldas & Co. (SAM & Co.) on its proposed acquisition of Allianz SE’s entire 26 percent promoter stake in their insurance joint ventures, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). The transaction is valued at approximately $2.8 billion, and JSA Advocates & Solicitors represented Allianz on the deal.
This acquisition is poised to become one of the largest and most important transactions in the Indian insurance sector in recent times. Once completed, the deal will increase the Bajaj Group’s ownership in both BAGIC and BALIC to 100 percent. The transaction marks the exit of the German financial services giant Allianz from its long-standing joint ventures with Bajaj Finserv.
The two companies initially formed a joint venture in 2001. At the time, Allianz held a 26 percent stake, the maximum allowed to foreign investors under the existing regulations. Although India subsequently increased the foreign direct investment (FDI) cap in the insurance sector, disagreements had emerged between the partners in recent years, with Allianz seeking to increase its stake while Bajaj was unwilling to dilute its control, according to a report in the Financial Express.
The SAM transaction team was led by partners Shailaja Lall and Akshay Sachthey. They were assisted by principal associate Anupam Choudhary and associates Poorvisha Jindal and Nidhi Lakhotia. Shardul Shroff, SAM’s executive chairman, contributed strategic insights. Partners Harman Singh Sandhu and Aman Singh Sethi advised on competition law matters. Partner Gouri Puri handled the tax aspects of the deal, and partner Manjari Tyagi provided inputs from a securities law perspective.
JSA’s team representing Allianz was led by partners Venkatesh Raman Prasad and Ronak Ajmera. They were supported by principal associate Ankita Jain and associate Udit Rao.
