Sumitomo Mitsui Financial Group Inc on Wednesday said it has completed the purchase of a 74.9 per cent stake in Fullerton India Credit Company from Fullerton Financial Holdings Pte Ltd. The transaction was done on November 30, 2021, a company release said.
However, the company did not disclose the financial details of the transaction.
Post completion of the purchase, Fullerton India has become a consolidated subsidiary of Sumitomo Mitsui Financial Group Inc (SMFG), it said.
As part of the transaction, Fullerton India’s board will be reconstituted to comprise Nobuyuki Kawabata, Rajeev Veeravalli Kannan, Hong Ping Yeo, Anindo Mukherjee, Shantanu Mitra, Shirish Moreshwar Apte, Milan Robert Shuster and Sudha Pillai, the release said.
Fullerton India’s management team will continue to operate under the leadership of Shantanu Mitra, Managing Director and CEO of Fullerton India.
“We will be able to unlock the potential of the Fullerton India platform and drive significant value creation through synergies between SMFG and Fullerton India,” SMFG’s President and Group CEO Jun Ohta said.
SMFG will eventually purchase 100 per cent of Fullerton India over a period of time, the release said.
The transaction marks the largest M&A (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 access to a pan-India footprint across 25 states, 600 towns and more than 58,000 villages through 698 branches.
