In a mega merger, Max Life Insurance is proposing to be merged into HDFC Standard Life Insurance. HDFC, the parent company of HDFC Standard Life Insurance, said in a filing to the stock exchanges that the boards of directors of HDFC Standard Life Insurance Company, Max Life Insurance Company and Max Financial Services have approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company and Max Financial Services into HDFC Life by way of a scheme of arrangement. Max Financial Services in a separate filing said the agreement provides for a mutually agreed exclusivity period for due diligence and discussions between the parties in relation to the proposed transaction. The proposed arrangements would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective high courts/NCLT, and other third party approvals, as may be applicable, it added. The merger will create the country’s biggest private life insurer. Max Financial owns 68% stake in Max Life. HDFC Life is currently the third-biggest private sector life insurer in India, while Max Life is fourth-biggest. HDFC Life, which had plans for an IPO, said it may not proceed with the plan in the light of the proposed merger.
