<div>Larsen & Toubro has exited the general and health insurance space by selling its entire stake in L&T General Insurance to HDFC ERGO General Insurance.<br /><br /> “L&T has entered into a share sale and purchase agreement with HDFC ERGO General Insurance Company (HDFC ERGO) for sale of its entire stake in L&T General Insurance Company (LTGI), a wholly-owned subsidiary of the company for a total consideration of Rs 551 crore,” L&T said.<br /><br /> The transaction envisages share sale by the company to HDFC ERGO and subsequent merger of HDFC ERGO and LTGI. The transaction is subject to various approvals, including approval of Insurance Regulatory and Development Authority of India and Bombay High Court, L&T said. <br /><br />“Considering the importance of scale in the insurance business, consolidation within the insurance industry is inevitable. This transaction marks the beginning of this consolidation phase. The acquisition will help HDFC ERGO to further strengthen its presence in the market,” HDFC and HDFC ERGO General Insurance chairman Deepak Parekh said. “The combined size and expertise will result in improved cost efficiencies in the merged entity and benefit policy holders and other stakeholders,” he added.<br /><br />The acquisition would help HDFC ERGO improve its market position. It expects significant cost synergies arising out of business, technology optimisation and rationalisation of offices, the company said.<br /></div>
<div>Larsen & Toubro has exited the general and health insurance space by selling its entire stake in L&T General Insurance to HDFC ERGO General Insurance.<br /><br /> “L&T has entered into a share sale and purchase agreement with HDFC ERGO General Insurance Company (HDFC ERGO) for sale of its entire stake in L&T General Insurance Company (LTGI), a wholly-owned subsidiary of the company for a total consideration of Rs 551 crore,” L&T said.<br /><br /> The transaction envisages share sale by the company to HDFC ERGO and subsequent merger of HDFC ERGO and LTGI. The transaction is subject to various approvals, including approval of Insurance Regulatory and Development Authority of India and Bombay High Court, L&T said. <br /><br />“Considering the importance of scale in the insurance business, consolidation within the insurance industry is inevitable. This transaction marks the beginning of this consolidation phase. The acquisition will help HDFC ERGO to further strengthen its presence in the market,” HDFC and HDFC ERGO General Insurance chairman Deepak Parekh said. “The combined size and expertise will result in improved cost efficiencies in the merged entity and benefit policy holders and other stakeholders,” he added.<br /><br />The acquisition would help HDFC ERGO improve its market position. It expects significant cost synergies arising out of business, technology optimisation and rationalisation of offices, the company said.<br /></div>
