Chennai: Max Life Insurance and Max Financial Services have signed agreements in partnership with HDFC Standard Life Insurance Company Ltd to create the country's biggest private life insurer.
However, neither side have disclosed how much stake the foreign partner of Max Life would hold after the partnership.
A regulatory filing in the BSE by Housing Development Finance Corporation Ltd (HDFC) said that the Board of Directors of HDFC Standard Life Insurance at a meeting on June 17, 2016, has approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a proposal for a potential combination through a merger of Max Life Insurance Company Limited and Max Financial Services Limited with HDFC Life by way of a scheme of arrangement.
The proposed arrangements would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective High Courts and other approvals.
HDFC Standard Life is a joint venture between HDFC with 61.63 per cent stake, Standard Life (Mauritius Holdings) 2006 Ltd with 35 per cent stake and the rest by others.
Earlier this month, HDFC had announced that its general insurance company HDFC ERGO General Insurance's board had approved the acquisition of L&T General Insurance Company for Rs 551 crore.
(With IANS Inputs)
