Sumitomo Mitsui FG: Acquisition of non-bank in India: Fullerton India
-Acquired 74.9% for 220 billion yen-
[Tokyo, July 6, Reuters]
Sumitomo Mitsui Financial Group:
On July 6, it announced that it would acquire India’s non-bank Fullerton India.
Acquired Fullerton India:
It will acquire a 74.9% stake in Fullerton Financial Holdings for $ 2 billion.
Aim to become a wholly owned subsidiary in the future.
Fullerton Financial:
It is wholly owned by Singapore investment company Temasek.
Fullerton India has more than 650 stores throughout India.
We provide unsecured loans and real estate secured loans for SMEs, business individuals, and the middle class of individuals.
Reuters
https://jp.reuters.com/article/smfg-india-ma-idJPKCN2EC0F5
Japan’s SMFG to buy 74.9% stake in Fullerton India for $2 bln
TOKYO, July 6 (Reuters)
Sumitomo Mitsui Financial Group Inc (8316.T), Japan’s second-largest lender by assets,
said on Tuesday it would buy a 74.9% stake in Fullerton India for $2 billion, marking the first major foray by a Japanese bank into India during recent times.
Given a slow-growing domestic market, Japanese banks including SMFG
have sought business opportunity outside the country, which faces an ageing and shrinking population.
Fullerton Financial,
parent of the Indian non-bank firm, is a unit of Singapore’s state investment fund Temasek Holdings Pte.It is a central bank-registered shadow lender that offers loans to individuals and small businesses.
“SMFG will gain a retail finance platform in India as it is essential for the expansion of its Asia franchise,”
the Japanese lender said in a statement, adding that it plans to acquire the Indian credit firm from Fullerton Financial at a later stage.
There are an estimated 10,000 shadow lenders in India out of which
the top 100 manage at least 80% of the total assets under management, according to analysts.
Philippine bank
Last month, SMFG agreed to invest about 10 billion yen ($90.26 million) in Philippine bank Rizal Commercial Banking Corporation,Vietnam’s non-bank
and in April SMFG said it would invest up to 150 billion yen in Vietnam’s biggest non-bank lender FE Credit.Reuters
https://www.reuters.com/world/india/japans-smfg-buy-749-stake-fullerton-india-2-bln-2021-07-06/