In what is the biggest consolidation in the India's private insurance sector,
"The Board of Directors of HDFC Standard Life Insurance Company, Max Life Insurance Company Ltd and Max Financial Services Ltd... approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company Ltd and Max Financial Services Ltd into HDFC Life by way of a scheme of arrangement," said HDFC in an NSE filing.
In another filing, Max Financial Services reported that the agreement gives a mutually agreed exclusivity period to the parties for due diligence and discussions regarding the proposed transaction.
It added that the proposed arrangements would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective High Courts/NCLT, and other TPAs.
As of now, India allows 49% FDI in the insurance sector.
Image source