November 4th, 2023
MergerDomo’s weekly Newsletter brings you the latest on M&As, JVs, Investments and noteworthy partnerships that are shaping the future of businesses in India.
This week's M&A highlights in India feature significant deals, such as AU Small Finance Bank's USD 530 million merger with Fincare, SEBI's ban lift for Zee-Sony merger, Reliance's acquisition of Sephora, Lenskart's purchase of Tango Eye, Adani Power's comeback, Zurich's stake in Kotak Mahindra, Angel One's fintech boost, Blackstone's healthcare entry, and Siemens Energy's stake sale considerations.
AU Small Finance Bank (AU SFB) is set to merge with Fincare Small Finance Bank in a USD 530 million all-share deal that promises a host of benefits. The merger opens doors for AU SFB to enter the lucrative microlending sector and expand its presence in southern India. Shareholders of Fincare will receive 579 shares of AU SFB for every 2,000 shares they own, resulting in Fincare owning 9.9% equity in AU SFB. This merger aims to enhance AU SFB's presence in the microfinance sector and increase its unsecured assets. Despite investor concerns, AU SFB's management is confident about the deal's potential success and the synergy between the two banks. This strategic move will position AU SFB as a stronger and more complete financial institution, with a focus on microfinance and growth in southern markets.
Read more lessThe Securities Appellate Tribunal (SAT) has overturned the ban placed by the Securities and Exchange Board of India (SEBI) on Punit Goenka, the MD/CEO of Zee Entertainment Enterprises, allowing him to hold a leadership position in the merger with Sony's Indian channel business. The move accelerates the proposed merger between Zee and Sony, creating a USD 10 billion business. While SEBI may appeal the SAT decision, it signifies a major development in a merger that has been in progress since 2021. The ban was previously imposed due to allegations of insider trading and financial improprieties.
Read more lessReliance has acquired Sephora's 26 stores in India from Arvind Fashions in a INR 99 crore (USD 11.89 million) deal. This move strengthens Reliance's position in the beauty and cosmetics market, allowing it to operate Sephora stores across the country and expand its presence. Sephora offers a range of products, including luxury brands like Dior and Tom Ford. The acquisition follows earlier reports of abandoned talks between Sephora and Reliance Retail regarding a retail partnership. As the demand for clean beauty and celebrity-owned brands grows in India, beauty retailers are striving to attract and retain customers in this fast-growing market.
Read more lessIn a strategic move, eyewear unicorn Lenskart has acquired AI-powered computer vision startup Tango Eye. While the deal size remains undisclosed, Lenskart's early investment in Tango Eye showcases its commitment to innovative technology. Tango Eye, founded by Surender Gounder in 2018, leverages AI to analyze footfall in retail stores, optimizing customer flow and adherence to procedures. With this acquisition, Lenskart plans to enhance the in-store and product experience by integrating visual AI technology. This transformative step sets the stage for a seamless fusion of digital and physical touchpoints, further revolutionizing the retail industry.
Read more lessAdani Power has made a significant comeback in its pursuit to acquire the insolvent Lanco Amarkantak Power, submitting an improved offer of INR 3,650 crore to lenders. This renewed bid aims to reshape the bankruptcy acquisition process, following Adani's withdrawal from the race in December. While a majority of lenders previously favored a INR 3,020 crore resolution plan from a PFC-led consortium, the increased offer, coupled with Lanco Amarkantak's enhanced cash balance, could potentially prompt lenders to reconsider their initial decision. The competition to secure the acquisition remains intriguing, with lenders set to evaluate Adani's latest proposal.
Read more lessZurich Insurance Group has entered into a strategic alliance with Kotak Mahindra Bank Limited, acquiring a 51% stake in Kotak Mahindra General Insurance Company Limited for USD 488 million. The deal marks the largest foreign insurer investment in the Indian insurance sector since the regulatory changes allowing majority foreign ownership in 2021. Zurich plans to acquire an additional stake of up to 19% over time. The partnership leverages Zurich's global expertise and Kotak Mahindra Group's Indian financial services knowledge to accelerate the development of the Indian insurance business and provide innovative solutions in a rapidly growing market.
Read more lessMumbai-based stock broking firm, Angel One, has acquired the team of Dstreet Finance, a Bengaluru-based fintech startup, in its first-ever tech startup team acquisition. This strategic move aims to enhance Angel One's fintech offerings and product suite for next-generation clients. Dstreet Finance specializes in content and creating engaging learning experiences tailored for emerging stock market investors. As Angel One looks to double down on its 'fintech superapp' strategy, this acquisition will help reinforce its goal of becoming a comprehensive financial platform.
Read more lessUS-based private equity giant Blackstone has successfully acquired a 72.5% stake in Quality Care India Ltd (QCIL), the operator of Care Hospitals, from Evercare, a TPG Rise-backed platform. The deal, estimated at approximately USD 580 million, marks Blackstone's entry into India's healthcare services sector. TPG will retain the remaining 27.5% stake in QCIL. In a parallel transaction, QCIL has signed an agreement to purchase around 80% of KimsHealth, a quaternary care hospital network in Thiruvananthapuram, valued at USD 400 million. Blackstone's total commitment, encompassing its investments in QCIL and KimsHealth, is estimated at USD 1 billion. The consolidation will create one of India's largest hospital platforms, spanning 11 cities, with 23 facilities and 4,000 beds, competing with major healthcare players like Aster DM India and Fortis Healthcare. Blackstone aims to grow the platform both organically and through acquisitions in India's healthcare sector.
Read more lessSiemens Energy, a leading player in the wind and gas turbine industry, is reportedly considering a substantial stake sale of approximately USD 3.5 billion to its former parent, Siemens AG. This potential move could provide Siemens Energy with a swift capital infusion to bolster its financial stability. The discussions align with ongoing talks with the German government and Siemens regarding the provision of performance bond guarantees. While no official statements have been made, raising the stake in Siemens Ltd appears to be a more favorable option for Siemens AG compared to providing guarantees to Siemens Energy. India's M&A landscape this week covers various sectors: finance, media, beauty, retail, power, insurance, fintech, healthcare, and energy. These deals showcase India's diverse business environment. Stay updated on India's M&A developments as we continue to bring you the latest news and insights. Are you also looking to uncover valuable M&A opportunities and make informed decisions? Dive into the world of MergerDomo and experience an unmatched platform offering everything you need for successful M&A ventures. From deal postings, finding relevant counter parties, to finding expert consultants, MergerDomo simplifies your M&A journey. Get started with MergerDomo today!
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