Money & Banking

Sumitomo Mitsui Financial acquires 74.9% stake in Fullerton India

K. R. Srivats | | | Updated on: Dec 01, 2021
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The Fullerton acquisition gives the Japanese company Sumitomo Mitsui Financial a pan-India presence

Sumitomo Mitsui Financial Group, Inc (SMFG) has completed the purchase of 74.9 per cent stake in Fullerton India Credit Company Limited (Fullerton India) from Fullerton Financial Holdings Pte Ltd (FFH).

Post the purchase, Fullerton India has become a consolidated subsidiary of SMFG, which will eventually purchase 100 per cent of Fullerton India.

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The transaction marks the largest merger and acquisition of a private company in Indian financial services in the last two years and the largest ever inbound control acquisition by a Japanese enterprise entering the Indian market. The acquisition gives SMFG a pan-India presence across 25 states, 600 towns and 58,000-plus villages through 698 branches.

Fullerton India’s management team will continue to operate under the leadership of Shantanu Mitra, Managing Director and CEO.

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“We are delighted to welcome Fullerton India as a member of SMFG and our business partner in India. The foundation of a country’s development is not just the growth of its corporates but also that of its citizens — Fullerton India will play an important role to promote inclusive growth in line with our long-term strategy for India,” said Jun Ohta, President and Group CEO of SMFG.

Mitra said : “With the rapid deployment of vaccines and steady decline in Covid infection rates, we are witnessing a strong revival of economic activity in India. There is a steady pick-up in credit demand and healthy loan growth. In addition, portfolio quality is also demonstrating encouraging signs of improvement”.

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.

Published on December 01, 2021

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