Zurich Insurance to Buy 51% in Kotak General for $487 Million

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Zurich Insurance Co. has agreed to buy a majority stake in Kotak Mahindra General Insurance Co. for 40.51 billion rupees ($487 million), including infusion of fresh capital.

The Switzerland-based insurer will buy 51% stake in Kotak Mahindra Bank’s insurance unit through a combination of fresh capital and share purchase, and will buy another 19% within three years, the Indian lender said in an exchange filingBloomberg Terminal. All three financial companies have entered into definitive agreements for the deal.