Sumitomo Mitsui Financial Group on November 30 completed the purchase of a 74.9 percent stake in Fullerton India Credit Company (“Fullerton India”) from Fullerton Financial Holdings (“FFH”).
“After the completion of the purchase, Fullerton India has become a consolidated subsidiary of SMFG. SMFG will buy 100% of Fullerton India over time.”
As part of the transaction, Fullerton India’s board will be reconstituted to include Nobuyuki Kawabata, Rajeev Veeravalli Kannan, Hong Ping Yeo, Anindo Mukherjee, Shantanu Mitra, Shirish Moreshwar Apte, Milan Robert Shuster and Sudha Pillai.
Fullerton India’s management team will continue to function under the leadership of Mitra, Managing Director and CEO, Fullerton India.
“The acquisition gives SMFG access to a pan-India footprint through 698 branches in 25 states, 600 towns and over 58,000 villages,” the statement said.
transaction value
According to reports, Japan’s SMFG announced the transaction in July this year, which was valued at around $2 billion.
“We believe that SMFG’s experience in building high quality franchises and digital platforms in emerging markets is valuable for the next phase of Fullerton India’s journey. At the same time, FFH will partner with SMFG as a significant minority shareholder and a Will work with SMFG to ensure a smooth and successful transition,” said FFH CEO Hong Ping Yeo.
“With rapid deployment of vaccines and a steady decline in the COVID infection rate, we are witnessing a strong revival of economic activity in India. There is a steady increase in credit demand and healthy credit growth. Moreover, the portfolio quality is also showing encouraging signs of improvement,” said Shantanu Mitra, Managing Director and CEO, Fullerton India.
“With the backing of two reputed multinational houses as shareholders, Fullerton India is well positioned to further strengthen the franchise and capitalize on the growth in the Indian market,” he added.
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