Sumitomo Mitsui Financial Group (SMFG) on Tuesday announced that it would acquire 74.9% stake in Fullerton India Credit Company (FICC), subject to regulatory approvals. The plan is to sell the remaining 25% also to Sumitomo in due course. The deal value is pegged at nearly $2 billion sources indicated.
This investment brings together SMFG’s Asian push towards consumer and MSME lending, with FICC’s expertise in serving mass-market consumers and MSME customers in India.
“SMFG is one of the largest financial service groups in Japan offering a diverse range of financial services. We intend to leverage our expertise in Japan market as well as capabilities of our franchises across key emerging Asian markets. We are pleased to partner with FFH and jointly accelerate FICC’s growth strategy.”, said Jun Ohta, President & Group CEO of SMFG.
Ohta added that India is one of its focus markets which has high growth potential.
“Over the years, we have built a strong franchise with high governance standards and remained resolute in our financial inclusion journey, serving customers in the country’s hinterlands, through our extensive distribution network,” said Shantanu Mitra, Managing Director and CEO of FICC.
“With SMFG’s strong endorsement of our capabilities and potential to scale up further, we are sure we will further strengthen the franchise and create long term value for all our stakeholders.”