Sumitomo Mitsui Banking Corporation (SMBC), a unit of Sumitomo Mitsui Financial Group, signed a definitive agreement on May 9, 2025, to acquire a 20% stake in Indian private lender Yes Bank. This transaction marks the largest cross-border merger and acquisition deal in India's financial sector.
The total value of the deal is 134.8 billion rupees, equivalent to approximately $1.58 billion. The acquisition involves SMBC purchasing a 13.19% secondary stake from State Bank of India and the remaining 6.81% from other existing shareholders.
This significant investment expands SMFG's presence in the rapidly growing Indian financial market, aligning with its strategy for global diversification and inorganic growth. Yes Bank's chief executive expects SMBC to maintain at least a 20% stake in the lender, with regulatory requirements potentially limiting further increases beyond that level.
The strategic stake in Yes Bank provides SMBC with a substantial foothold in a key emerging market. This move is expected to enhance SMFG's long-term potential and diversify its revenue streams, contributing to its overall global strategy.
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