Bharti Enterprises and Reliance Industries today terminated talks for the stake sale in Bharti AXA insurance companies due to differences over issues related to long term vision and joint governance.
"AXA, Bharti, Reliance Industries (RIL) and its associate Reliance Industrial Infrastructure (RIIL) announced today that they have mutually agreed to terminate their negotiations on the proposed acquisition by RIL and RIIL of Bharti's shareholding of 74% in Bharti AXA Life Insurance and Bharti AXA General Insurance," Bharti said in a statement.
In a separate statement, RIL said the talks were terminated as parties had failed to "reach agreement on long-term vision and joint governance of the ventures."
After nearly five years of its association with France's AXA, Bharti had in June announced it would exit from the financial services JVs and sell its entire 74% stake in both general and life insurance businesses. Industry experts had valued the deal at around Rs 5,000 crore.
"Bharti AXA Life and Bharti AXA General Insurance will continue to develop their operations in India, as they have successfully done over the past years, and build a sustainable and long-term business by tapping the significant growth potential offered by the Indian market," it added.
The company had entered into these 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.
The AXA group is a global player in insurance and asset management, with 214,000 employees serving 95 million clients. In 2010, its revenues amounted to 91 billion euros.