Japan’s SMFG To Buy 74.9 % Stake In Fullerton India For $ 2 billion
- ByStartupStory | July 6, 2021
Sumitomo Mitsui Financial Group, SMFG to buy 74.9 % stake in Fullerton India for $ 2 billion as the bank shows interest in expanding its business somewhere in Asia. This is their first acquisition in a South Asian country’s retail financial business. SMFG will eventually acquire the rest of the Indian credit firm , Fullerton, however no terms of the transaction were produced. Bloomberg news had earlier reported that Sumitomo Mitsui has agreed to pay $2 billion for the holding. Fullerton Financial, is the parent company of a non-bank form and is a unit of Singapore’s state investment fund Temasek Holdings Pte. It is a central-bank registered shadoe lender that offers loans to both individuals and small businesses.
Sumitomo Mitsui had been facing weak growth prospects at their home country, and thus it had been allocating resources to Asia’s upcoming markets for the last few years. The bank took control of indonesian pt bank Tabungan pensiunan nasional in 2019 after they had acquired a minority stake there earlier. They had been looking for targets in Vietnam, Philippines and India. This was confirmed by Jun Ohta, CEO of the company. Sumitomo Mitsui in April agreed to buy a 49% stake in Vietnamese Consumer lender – FE Credit. Last month the bank had confirmed that it will buy a 4.99% stake in Rizal Commercial Banking Corp of the Philippines for 4,48 billion pesos ($91 million)
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