Housing Development Finance Corp’s general insurance subsidiary HDFC Ergo is planning to acquire Apollo Munich Health Insurance for an approximate valuation of Rs 2,600 crore, said sources.
Apollo Munich is 51:49 joint venture between Chennai-based Apollo Hospitals and German reinsurance company Munich Re.
While Apollo Hospitals are promoted by Prathap C Reddy and his family, Munich Reis the second-largest standalone health insurance provider in the country.
Sources suggest that Munich Re will leave the company after the sale.
“Apollo will own a marginal stake in the merged entity with HDFC Ergo,” said a person aware about the development.
Ergo, the German insurer that owns 49 percent stake in HDFC Ergo, is acquired by Munich Re.
Arpwood Capital is the exclusive advisor to the proposed deal between HDFC Ergo and Apollo Munich.
