Sumitomo Mitsui Financial Completes Purchase of 74.9% Stake in Fullerton India
Moneylife Digital Team 01 December 2021
Sumitomo Mitsui Financial Group Inc (SMFG) says it has completed the purchase of a 74.9% stake in Fullerton India Credit Co Ltd from Fullerton Financial Holdings Pte Ltd, a subsidiary of a Singapore-based investment company Temasek. Post completion of the purchase, Fullerton India has become a consolidated subsidiary of SMFG  and eventually, it will buy 100% of Fullerton India over some time, the company says.
 
The acquisition gives the Japanese company access to a pan-India footprint across 25 states, 600 towns and over 58,000 villages through 698 branches. 
 
Jun Ohta, pesident and group chief executive (CEO) of SMFG, says, "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. SMFG is committed to supporting the growth plan of Fullerton India by leveraging our customer network and through funding support."
 
Fullerton India's board will be reconstituted as part of the transaction to comprise Nobuyuki Kawabata, Rajeev Veeravalli Kannan, Hong Ping Yeo, Anindo Mukherjee Shantanu Mitra, Shirish Moreshwar Apte, Dr Milan Robert Shuster and Sudha Pillai. 
 
Fullerton India's management team will continue to operate under the leadership of Mr Mitra, managing director (MD) and CEO of Fullerton India, SMFG says.
 
According to Mr Mitra, with the rapid deployment of vaccines and steady decline in COVID infection rates, India is witnessing a strong revival of economic activity and there is a steady pick up in credit demand and healthy loan growth. He says, "With the support of two reputed multinational houses as shareholders, Fullerton India is well-positioned to strengthen the franchise further and capitalize on the growth in the Indian market." 
 
Post the deal, Fullerton India Home Finance Co Ltd, a housing finance company, would continue to remain a wholly-owned subsidiary of Fullerton India.
 
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