Reliance General, Royal Sundaram merger hits roadblock

The proposed merger of Reliance General Insurance and Royal Sundaram Alliance has hit a roadblock, with differences over valuation.

According to persons with knowledge of the issue, both firms have failed to reach an agreement on the valuation of Reliance General. Reliance General reckons that its valuation is well over Rs 2,000 crore, but this has been disputed by the Chennai-based Royal Sundaram Alliance. Both the companies are likely to inform the regulator that the merger, in the form currently proposed, may not go through, they said on condition of anonymity.

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