Larsen & Toubro on Monday said that it is calling off its joint venture with Future Generali Insurance.
On March 26, 2013, L&T had announced that its general insurance subsidiary, L&T General Insurance (LTGI), was in talks with Future Generali Insurance for formation of a joint venture that would combine and continue the business of general insurance in India.
L&T General Insurance and Future Generali Insurance had entered into a non-binding agreement to jointly examine the terms of a potential transaction.
“The parties have now decided mutually to call off the discussions around the proposed joint venture. L&T General Insurance will continue its focus on expanding its business footprint in the areas of both general and health insurance,” the company said in a filing with the BSE.
Future Group had announced in March that L&T will buy 51% stake in its general insurance venture with Generali. Although the companies had not disclosed details, sources put the deal value at over R560 crore. The deal had valued Future Generali India Insurance Company at around R1,100 crore. At present, Future Group holds 74% stake in Future Generali India Insurance Company, while the rest is with Italy-based Generali Group.