Max Financial Services on Monday called off its proposed merger with HDFC Standard Life Insurance Co Ltd, citing delays in the process.
The proposal to merge Max Life with parent Max Financial and in turn combine its life insurance business with HDFC Standard Life had failed to win approval from the country’s insurance regulator.
The standstill agreement between Max Financial Services, its unit Max Life Insurance, Max India Ltd and HDFC Standard Life will not be extended, Max Financial Services said in an exchange filing. http://bit.ly/2ubgPLx
HDFC Standard Life, a joint venture between HDFC Ltd and Britain’s Standard Life Plc, agreed last year to take over smaller rival Max Life Insurance in a deal to create India’s top private life insurer.
The inordinate time associated with finalisation and approval of several alternate structures by the prospective partners led to the call-off decision, Max Financial Services added.
Shares of Max Financial were trading about 1.8 percent higher, while HDFC Ltd fell 1.02 percent as of 0600 GMT.