Reliance Industrial Infrastructure and its associates Reliance Industries have mutually called off a deal on the contemplated acquisition of Bharti's shareholding of 74% in Bharti AXA Life Insurance Company and Bharti AXA General Insurance Company. The deal has been jointly terminated as a result of the parties being unable to reach an agreement on the long term vision and joint governance of the ventures.
France-based AXA holds the remaining 26% stake in the two insurance companies -- Bharti AXA Life Insurance Co. and Bharti AXA General Insurance Co.
AXA and RIL had reached an understanding on this transaction on June 10, 2011, 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.
Bharti had entered into joint ventures with the AXA group in 2006 and held 74% stake in both these ventures-Bharti AXA Life Insurance and Bharti AXA General Insurance.