HDFC Ergo Eyeing to acquire Apollo Munich Health Insurance
HDFC Ergo General Insurance is in advanced talks to acquire Apollo Munich Health Insurance for around Rs 2,600 crore. This acquisition will see the exit of German reinsurance company Munich Re.
Munich Re holds 49% stake in Apollo Munich while Chennai-based Apollo Hospitals, promoted by Prathap C Reddy and his family, holds 51% stake in the second-largest standalone health insurance provider in the country.
HDFC Ergo, arm of housing finance firm HDFC, is 49% owned by Ergo International AG, an insurance unit of Munich Re, and 51% by HDFC. In 2016, HDFC Ergo had acquired L&T General Insurance to become the third-largest private sector general insurer in the country.
Arpwood Capital is acting as an exclusive advisor to both target and buyer.
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