Insurance Regulatory and Development Authority of India (Irdai) on Friday gave in-principle approval for the merger of Bharti AXA General with ICICI Lombard.
ICICI Lombard is progressing applications for receipt of requisite approvals from other concerned regulators for the transaction, the insurance company said in a regulatory filing.
Upon closing of the proposed transaction, the consolidated entity will have a market share of about 8.7 per cent on a pro forma basis in the non-life business, it added.
The proposed transaction is expected to result in value creation for all stakeholders through meaningful revenue and operational synergies, it said.
"Further, policyholders should benefit from an enhanced product suite and deeper customer connect touchpoints," the company said, adding the employees of the combined business will also benefit via greater opportunities across functions and geographies.
Marking a major consolidation move in the insurance space, the proposed deal was announced in August this year.
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 and AXA will be public shareholders.
Earlier this month, the Competition Commission of India (CCI) had approved the acquisition of Bharti AXA General Insurance by ICICI Lombard. BSE Limited and the National Stock Exchange of India Limited too have issued the Observation Letters in this regard.