The Competition Commission of India (CCI) approves acquisition in Magma HDI General Insurance Company Limited (Magma HDI) by India Advantage Fund S4 I (IAF S4 I) & Dynamic India Fund S4 US I (DIF) through a special purpose vehicle and by NHPEA Trisul Holding B.V (NTH).

The following Proposed Combination involving an acquisition of is approved by CCI:

an effective combined interest of less than 25% (on a fully diluted basis) of the share capital of Magma HDI by IAF S4 I and DIF, acting through a special purpose vehicle (SPV-I) (IAF/DIF Transaction); and

an effective combined interest of less than 10% (on a fully diluted basis) of the share capital of Magma HDI by NTH (NTH Transaction).

The IAF/DIF Transaction and the NTH Transaction are collectively referred to as the ‘Proposed Combination’

IAF S4 I and DIF, acting through special purpose vehicle (SPV-1/Acquirer-1): SPV-I is a private limited company incorporated under the Indian Companies Act, 2013, in accordance with the IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines, 2017 for the purpose of investing in the share capital of the Target.

NTH/Acquirer-2: NTH is an investment holding company which ultimately belongs to a fund managed or controlled by an affiliate of Morgan Stanley. Morgan Stanley, a financial holding company, is a global financial services firm that maintains market positions in each of its business segments- Institutional Securities, Wealth Management and Investment Management.

Magma HDI/Target:Magma HDI is engaged in the non-life insurance business in India only. Magma HDI offers products across various categories including Motor, Health,  Personal  Accident,  Home,  Fire, etc. in general insurance sphere.

Detailed order of the CCI will follow.

Merger clearance: approval of minority acquisitions in Magma HDI by private equity funds and an investment holding company. CCI approves a Proposed Combination comprising two minority acquisitions in Magma HDI: IAF S4 I and DIF acquiring, via SPV-I, an effective combined interest of less than 25% and NHPEA Trisul Holding B.V acquiring an effective combined interest of less than 10%. SPV-I is incorporated under the Indian Companies Act and formed in compliance with IRDAI Guidelines for private equity investment in Indian insurance companies; NHPEA is an investment holding company linked to a fund managed by an affiliate of Morgan Stanley. Magma HDI is a non life insurer in India.