The proposed combination relates to acquisition of 100% shareholding in L&T General Insurance Company Limited (“LTGI”) by HDFC Ergo General Insurance Company Limited (“HDFC Erg
o”) from Larsen and Toubro (L&T). Subsequently, HDFC Ergo shall be merged with its then 100% subsidiary LTGI.
HDFC Ergo is engaged in providing housing finance, finance for commercial real estate, general insurance services, etc. LTGI is engaged in providing general insurance services. It offers a range of general insurance products, with product offerings spanning across auto, business, home and health insurance.
CCI noted that HDFC Ergo and LTGI have a combined market share of less than 5% in the market for general insurance services and less than 10% each in market segments of fire, marine, motor, health and other insurance. Further, it was noted that LTGI has limited presence in all segments and the incremental market share resulting from the proposed combination is insignificant (between 0 to 5 percent).
CCI accepted the modification proposed by the parties to reduce the non-compete period from for L&T from 5 years to 3 years. The proposed combination has been approved under Section 31 of the Act.
(Source: Order dated August 01, 2016. For full text see CCI website)
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M M SHARMA
Comdt. (Retd.) M. M. Sharma heads the Competition Law & Policy team in VA since 2009 and has over 30 years’ experience as an Advocate of Delhi High Court and holds a Post Graduate Diploma in Economics of Competition Law from Kings College, London. He has worked in the Competition Commission of India (CCI) as Additional Registrar during 2006-2008 and was responsible for drafting the Implementing Regulations under the Competition Act, 2002. He has experience of working as Head-Legal /In-house Counsel for a large Corporate Group in the Steel and Power sector before joining VA in 2009. He has represented clients as an independent arguing Counsel in landmark cases decided by CCI, the Competition Appellate Tribunal (COMPAT) , High Courts and the Supreme Court. As a prolific writer, he contributes articles and is regularly quoted on competition issues in National Newspapers and interviewed by TV Channels. He also teaches as a visiting faculty in various Universities and Institutions and is widely regarded as a subject expert in various Committees of Apex Business Chambers, such as FICCI, CII, ASSOCHAM and PHD CCI.
Mr. Sharma has been mentioned as a “Notable Practitioner” in the “Competition/Antitrust” category of Chambers & Partners (Asia Pacific) Ranking of Leading Lawyers for Business in India for the year 2012 and 2013. VA’s competition law and policy team has also been awarded the Law Firm of the Year Award for “Competition/Antitrust Law” for 2013 by the Indian Business Law Journal. Included as a ‘Recognised Practitioner’ in Individual Lawyers’ranking by Chamber’s Asia Pacific Guide 2020 for Antitrust/Competition Law.
o”) from Larsen and Toubro (L&T). Subsequently, HDFC Ergo shall be merged with its then 100% subsidiary LTGI.