CCI Clears Additional Stake Acquisition In Niva Bupa Health Insurance

On Thursday, the Competition Commission of India (CCI) granted approval for Bupa Singapore Holdings Pte to acquire an additional stake in Niva Bupa Health Insurance Company. Bupa Singapore Holdings, a subsidiary of The British United Provident Association Ltd (Bupa) and an existing shareholder of Niva Bupa, is set to increase its shareholding to 63 per cent through a secondary purchase of shares from Fettle Tone LLP. Niva Bupa Health Insurance operates in India, offering insurance policies, while Fettle Tone LLP is a special purpose vehicle established by the private equity firm True North Fund.

The CCI cleared the deal using the green channel route, as there were no significant concerns regarding horizontal or vertical overlaps or complementary businesses between Bupa Singapore Holdings and Niva Bupa. This regulatory mechanism deems a transaction approved if it poses no risk of appreciable adverse effects on competition.

In September, True North announced the sale of a 20 per cent holding in health insurer Niva Bupa for Rs 2,700 crore. The acquisition by Bupa Singapore Holdings is part of its strategy to become the majority shareholder in Niva Bupa after the completion of the deal. True North had become the majority shareholder in Niva Bupa in 2019 by acquiring a 51 per cent stake from Analjit Singh's Max India.