Japan’s Sumitomo eyes stake in India’s Reliance Capital
04 July 2014
Category: News, Asia, Global, India, Japan
By Maya Ando
Sumitomo Mitsui Trust Holdings, one of Japan’s largest financial conglomerates, is considering acquiring a 10% stake in Reliance Capital, a major Indian financial services provider, it was reported.
Sources told India’s Economic Times that Sumitomo Mitsui could pay up to US$400 million for new shares in Reliance, whose interests include asset management; life and general insurance; wealth management; and equities and commodities broking.
Reliance is said to have a net worth of approximately $2.1 billion, with total assets of $7.6 billion, as of March 31, 2014.
The acquisition would be the second attempt by Sumitomo Mitsui to access India’s financial industry. In June last year, Sumitomo Trust Bank, alongside Nippon Life Insurance, agreed jointly to buy up about 10% in a proposed banking subsidiary being set up by Reliance. However, the deal was scuttled after the Reserve Bank of India refused to grant a banking licence to the new entity.
Sumitomo Mitsui has been seeking to extend its operations overseas of late, and in May this year opened a banking subsidiary in Thailand following approval from the Southeast Asian country’s Ministry of Finance.