No acquisition of Bharti AXA: RIL

Last Updated: Fri, Nov 25, 2011 20:20 hrs

Reliance Industries Limited ('RIL') and its associate Reliance Industrial Infrastructure Limited ('RIIL') announced on Friday that negotiations on the contemplated acquisition by RIL and RIIL of Bharti's shareholding of 74% in Bharti AXA Life Insurance Co. Ltd and Bharti AXA General Insurance Co. Ltd are being jointly terminated as a result of the parties being unable to reach agreement on the long term vision and joint governance of the ventures.

On June 10, 2011, AXA and RIL announced that the parties had reached an understanding on this transaction, subject to negotiation and entering into legally binding agreements between RIL, RIIL and AXA, as well as obtaining necessary approvals from IRDA and other relevant/applicable approvals.

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with a turnover of INR 2,58,651 crore (US$ 58.0 billion), cash profit of INR 34,530 crore (US$ 7.7 billion), net profit of INR 20,286 crore (US$ 4.5 billion) and net worth of INR 1,51,540 crore (US$ 34.0 billion) as of March 31, 2011.

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