Mumbai: Larsen and Toubro Ltd (L&T), Generali Group and the Future Group have signed a non-binding term sheet for the merger of their general insurance businesses.

On completion of the merger, L&T and Generali would acquire such number of shares as would result in L&T having a 51% stake, Generali having a 26% shareholding and the balance to be held by Future Group in the merged entity, said a statement released by the company on Tuesday.

The completion of the transaction is subject to satisfactory due diligence by both the parties, execution of definitive binding documents and requisite approvals from the Insurance Regulatory and Development Authority (Irda) and other regulators and related corporate bodies, according to the statement.