Bajaj Finserv to release Allianz from non-compete clause after first tranche of stake buy, says Sanjiv Bajaj | Exclusive

Bajaj Finserv and other promoter entities are acquiring Allianz's 26% stake in Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance. Following this transaction, Bajaj Finserv and its promoter entities will hold 100% ownership in both companies.

In an exclusive interaction with CNBC-TV18, Bajaj Finserv Chairman and Managing Director Sanjiv Bajaj said that Allianz will be released from its non-compete clause once the first tranche of the stake acquisition is completed.

Bajaj said the agreement allows Allianz to pursue new opportunities in India post-transaction closure.

"Once the first part, the first tranche of the shares are bought by Bajaj, post all national regulatory approvals and the cancellation of the joint venture, we release Allianz from the non-compete clause. They will then be free to enter binding agreements in India. This was their desire and one of their key asks. As a large player, we understand this, and our negotiations ensured a win-win outcome for both sides," Bajaj said.

A non-compete clause is a contractual agreement that restricts a party from engaging in business activities that could compete with the other party for a specified period.

Bajaj also addressed competition in the Indian insurance sector, noting that it remains a crowded space where scaling up is challenging.

CNBC-TV18 earlier reported that Bajaj Finserv plans to list its life and general insurance businesses and is not seeking new partners, according to sources familiar with the matter.