Reliance Industries who wanted to plunge into Insurance sector by buying Bharti’s stake in Bharti AXA terminated the negotiations on the pretext that both the parties were unable to reach an agreement on the long-term vision and joint governance of the ventures with AXA.
Bharti Enterprises entered into Insurance space in 2006 by setting up two ventures - Bharti AXA Life Insurance and Bharti AXA General Insurance, in association with France-based AXA, where Bharti Enterprises have 74% stake and remaining 26% is with AXA.
Reliance with its associates Reliance Industrial Infrastructure reached an understanding with Bharti AXA in June 2011, where there were also working on obtaining approval from Insurance regulatory, IRDA.
Financial details of the transaction had not been disclosed by either of the parties. Bharti AXA said that their two ventures will continue with their usual operations in India as the termination of the deal will have no effect on their clients.
“The termination of the negotiations with RIL has no effect on our clients, our distributors, partners and employees.We will continue with business as usual, serving our clients, distributors and partners with top quality products and services,” said Sandeep Ghosh, CEO of Bharti AXA Life.