Future Group today called off its deal with Larsen & Toubro to sell 51 per cent of its stake in general insurance venture with Italy's Generali citing "inordinate delay" in finalisation.
In March 26 last year, a non-binding term-sheet for the merger of L&T General Insurance Company and Future Generali India Insurance Ltd was signed.
"It has been decided not to proceed with the said transaction due to inordinate delay in finalising the transaction documents and obtaining permissions," Future Group said in a filing to the BSE.
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As per the agreement, on completion of the merger L&T was envisaged to have 51 per cent stake, while Generali would hold 26 per cent shareholding and the balance to be held by Future Group in the merged entity.
The deal had valued Future Generali India Insurance Company at around Rs 1,100 crore
Future Group holds 74 per cent stake in Future Generali India Insurance Company, while the rest is with the Italy based Generali Group.
L&T General Insurance is a wholly-owned subsidiary of engineering and construction major L&T. L&T General Insurance started operations in 2010.
