On September 29, 2022, the CCI approved the proposed combination notice filed by Bank of Baroda involving acquisition of 21% shares of IndiaFirst Life Insurance Company Limited (‘IFLIC’) from the Union Bank of India.^[1]

Bank of Baroda is a public sector bank providing banking and financial services. Additionally, it also provides asset management services through its subsidiaries, distribution of insurance products, and provision of services related to home loans, personal loans, vehicle loans, education loans, etc. IFLIC is a public company, that is involved in the provision of life insurance, health insurance and pension services.

The CCI noticed that there are no horizontal overlaps between the products and services offered by the parties in India. With regards to the vertical overlaps between the activities of IFLIC and Bank of Baroda, CCI noted that there was one vertical overlap. IFLIC provided life insurance and related products in India (upstream market) and Bank of Baroda distributes life insurance products in India (downstream market).

The CCI left the delineation of the relevant market open, as the combination is not likely to cause AAEC. The market shares of IFLIC in the upstream market and the market share of Bank of Baroda in the downstream market were miniscule. Moreover, it was observed that other major players including Life Insurance Corporation, State Bank of India, ICICI Bank and HDFC Bank etc. will continue to pose competitive restraints to the parties after the acquisition.

Thus, the CCI approved the acquisition under Section 31(1) of the Competition Act.

[1] Combination Registration No.C-2022/08/962.