Sumitomo Mitsui acquires 75 per cent stake in Fullerton India for $2 billion
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Japan’s Sumitomo Mitsui Financial Group, Inc (SMFG). will acquire 74.9 per cent stake in Fullerton India Credit Company Ltd (FICC) for about $2 billion.
The stake is being acquired from Singapore-based Fullerton Financial Holdings Pte Ltd. and is subject to regulatory approvals. SMFG will eventually acquire 100 per cent of FICC.
The deal also includes Fullerton India Housing Finance Company Ltd., a subsidiary of FICC, with over 23,000 customers across India and operates in 70 locations with over 650 employees.
“This investment brings together SMFG’s Asian push towards consumer and MSME lending, with FICC’s expertise in serving mass-market consumers and MSME customers in India. The transaction reaffirms the strength of FICC’s platform underpinned by best-in-class corporate governance, risk management, prudent liquidity management, agile technology, and advanced analytics,” said a press statement from Fullerton
Jun Ohta, President & Group CEO of SMFG said, “India is one of our focus markets where we believe in its high growth potential and want to build a deeper presence. As a long-term investor, we believe that the FICC platform’s innate strengths of multi-product focus, pan-India distribution, and strong management will enable us to build a comprehensive financial service offering in India.”
SMFG Sumitomo Mitsui Financial Group, Inc. listed on the Tokyo and New York (via ADR) Stock Exchanges and has a market capitalization of approximately $47.4 billion (as of June 30, 2021).
Fullerton Financial Holdings Pte. Ltd.is a wholly-owned independent portfolio company of Singapore-headquartered investment company, Temasek.
Fullerton India Credit Company Ltd. is a diversified NBFC registered in India and a wholly-owned subsidiary of FFH. FICC started its India operations in 2007 and has established a pan India presence – across 600 towns and over 58,000 villages through 629 branches and 13,000 plus employees offering lending products to 2.3 million bankable yet underserved retail and small business borrowers
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