ICICI Lombard General Insurance has said it has entered into a deal to acquire Bharti Enterprises-promoted Bharti AXA General Insurance in all-stock transaction. Bharti Enterprises currently owns 51 per cent stake in Bharti AXA General Insurance, while French insurer AXA has 49 per cent.

Post demerger, Bharti AXA General Insurance will cease to be a going concern and both Bharti Enterprises and AXA will exit non-life business.

Boards of ICICI Lombard and Bharti AXA, the shareholders of Bharti AXA shall receive 2 shares of ICICI Lombard for every 115 shares of Bharti AXA held by them as on the date on which the ‘scheme of arrangement’ is approved by the board of ICICI Lombard and Bharti AXA.

The consolidation is beneficial for and in the interest of the policyholders as the demerger creates a more robust and financially strong insurer that can offer a wider product suite, more access points and comprehensive services to customers post completion of the scheme, it said.

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“The proposed transaction provides a meaningful opportunity for ICICI Lombard to consolidate its market leading position in the non-life insurance sector, becoming the third largest non-life insurer. The combined entity shall have a market share of about 8.7 per cent on pro-forma basis,” the statement said.

Bharti Enterprises has been trying for a long time to exit its financial services business. In 2016, Bharti Enterprises’ talks with Reliance Industries to sell its 74 per cent stake in Bharti AXA Life Insurance and Bharti AXA General Insurance could not reach the logical conclusion.