Bupa Singapore Holdings has secured approval from the Competition Commission Of India (CCI) to increase its stake in the Niva Bupa Health Insurance Company.

Bupa Singapore, a subsidiary of the British United Provident Association (Bupa), is an existing shareholder of Niva Bupa.

According to a CCI order, the proposed deal is related to the secondary purchase of shares by Bupa Singapore in Niva Bupa from Fettle Tone, a special-purpose vehicle of private equity company True North Fund.

Once the deal is complete, Bupa Singapore’s shareholding in Niva Bupa will increase to nearly 63%.

The CCI said that the proposed transaction is being notified under the “green channel route”.

A green channel route means that the deal does not pose any concern related to an appreciable adverse effect on competition.

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The order added: “Apart from the acquirer’s (Bupa Singapore) and Bupa’s existing interests in Niva Bupa, there are no horizontal overlaps, vertical overlaps, or complementary businesses between the acquirer and the target (Niva Bupa), in India, in relation to markets in which the target is present.

“As such, given that the proposed transaction is unlikely to raise any competition concerns, the relevant product and geographic markets may be left open.”

Niva Bupa is an India-based health insurance company that specialises in underwriting health insurance.

It mainly provides insurance policies related to critical illness, personal accident and overseas medical insurance.

The latest approval from CCI comes shortly after True North agreed to sell 20% of its stake in Niva Bupa to its joint venture partner Bupa for approximately Rs27bn ($324.27m).

The deal, once complete, will make Bupa a majority shareholder in Niva Bupa.

True North became a majority shareholder of Niva Bupa in 2019 and the former has since been working closely with Bupa to support Niva Bupa’s growth strategy.