Japan’s Sumitomo Mitsui Financial Group (SMFG) has secured a key approval for its previously announced acquisition of Fullerton India Credit Company.
The deal was green lighted by the Competition Commission of India (CCI).
In a statement, India’s Ministry of Corporate Affairs said: “CCI approves acquisition of shares in Fullerton India Credit Company Limited (FICC/ Target) by SMFG under Section 31(1) of the Competition Act, 2002.”
Notably, SMFG acquired 74.9% stake in non-banking financial company (NBFC) Fullerton India Credit Company in July. The deal was valued at around $2bn.
Eventually, SMFG is slated to acquire the remaining stake in the Indian firm.
As a NBFC, Fullerton India offers loans for commercial vehicles and two- wheelers, loans against property and loan against securities. It also provides personal loans, loans extended to real estate developers as well as credit to businesses and rural solidarity groups.
The company started its operations in 2007 and currently has a pan-India presence.
According to its website, Fullerton India has more than 629 branches and around 2.3 million customers.
The company also has a subsidiary Fullerton India Home Finance Company Limited (FIHFC). The unit is registered with the National Housing Bank as a non-deposit taking Housing Finance Company (HFC).
SMFG primarily manages its banking subsidiaries and other companies. The group is engaged in commercial banking, leasing finance, real estate financing and consumer finance among others.