Bharti, Reliance end talks on insurance JV deal

Reliance Industries has mutually agreed to end negotiations with Bharti Enterprises to buy its stakes in two insurance joint ventures with Frances AXA, the two Indian companies said on Friday.Reuters reported that Reliance said the negotiations to acquire Bhartis 74 per cent stakes in the life insurance and general insurance joint ventures were terminated as it was "unable to reach agreement on the long-term vision and joint governance of the ventures" with AXA. Reliance, Indias largest-listed company, had said in June that it would buy out Bhartis stakes, as it sought to build on moves beyond its core energy business. The parties had not disclosed financial details of the transaction. Reliance had planned to own, along with associate Reliance Industrial Infrastructure Limited, 57 per cent and 17 per cent, respectively, in each insurance venture, it had said in June. With growth in its core energy business below expectations over the past year, Reliance has been keen to diversify and has ventured into areas such as telecoms and financial services, as well as tried to build up its presence in retail. Bharti Enterprises, which controls leading Indian telecoms firm Bharti Airtel, had set up the venturesBharti AXA Life Insurance and Bharti AXA General Insurancewith AXA, Europes second biggest insurer, in 2006. It had earlier said the business did not fit in with its long-term plans, but on Friday said the two joint ventures will continue to develop their operations in India.
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