Japan's Mizuho to buy majority of India's Avendus from KKR for up to $523 million

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TOKYO, Dec 17 : Japan's Mizuho Securities on Wednesday said it will buy a majority stake in Indian investment bank Avendus from U.S. investment firm KKR for up to 81 billion yen ($523 million).

The buyout adds to Japanese financial institutions' growing footprint in India, where a fast-growing economy has made it an attractive target for Japanese firms facing an ageing and shrinking population at home.

Mizuho Securities, part of Japan's third-largest banking group, Mizuho Financial Group, said it will buy 61.6 per cent to 78.3 per cent of Avendus shares and make the bank a consolidated subsidiary.

Mizuho has been fielding an increasing number of enquiries from banking clients concerning expansion into India, Chief Executive Masahiro Kihara told a press briefing in Tokyo.

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The acquisition will strengthen Mizuho's ability to collaborate across regions, including with U.S. M&A advisor Greenhill which it bought in 2023, Kihara also said.

"Better cross-regional collaboration has been one of the great things about the Greenhill acquisition. On the investment banking side we thought India was a missing piece," Kihara said.

Avendus CEO Gaurav Deepak said he expects to expand hiring as a result of the partnership.

"We expect to invest far more in industrials, healthcare, infrastructure and energy," Deepak said at the briefing.

Larger Japanese rival Sumitomo Mitsui Financial Group bought 24.2 per cent of Indian lender Yes Bank earlier this year.

KKR first invested in Avendus in 2016.

($1 = 154.8300 yen)

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