Bharti Enterprises and Mukesh Ambani-owned Reliance Industries Ltd. (RIL) on Friday announced the termination of their talks on the stake sale in Bharti AXA insurance companies, citing differences over issues related to long-term vision and joint governance.
“AXA, Bharti, Reliance Industries (RIL) and its associate Reliance Industrial Infrastructure (RIIL) have mutually agreed to terminate their negotiations on the proposed acquisition by RIL and RIIL of Bharti's shareholding of 74 per cent in Bharti AXA Life Insurance and Bharti AXA General Insurance,'' Bharti said in a statement here.
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 joint ventures and sell its entire 74 per cent stake in general and life insurance businesses.
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.