India competition regulator approves SMBC's stake buy in Yes Bank
FILE PHOTO: A woman walks out of a branch of Yes Bank in New Delhi, India, August 30, 2024. REUTERS/Ainnie Arif/File Photo
India's competition regulator said on Tuesday it had approved Japanese bank Sumitomo Mitsui Banking Corporation's stake purchase in Indian lender Yes Bank.
SMBC in May had inked a deal to take a 20 per cent stake in Yes Bank for $1.6 billion, making it the largest cross-border merger and acquisition deal in India's financial sector.
The Japanese lender had agreed to buy a 13.19 per cent stake from State Bank of India and an aggregate 6.81 per cent stake from Axis Bank , Bandhan Bank , Federal Bank, HDFC Bank , ICICI Bank , IDFC First Bank and Kotak Mahindra Bank.
In August, SMBC received the Reserve Bank of India's approval to buy up to a 24.99 per cent stake in Yes Bank.
The Indian central bank also decided that SMBC will not be treated as Yes Bank's "promoter" - an Indian term for large shareholders - following the deal, Yes Bank had disclosed in an exchange filing.
The deal would have involved additional regulatory requirements if SMBC was considered a promoter.
