India clears Fairfax takeover of majority stake in IDBI Bank
The Indian government is selling nearly 61% of state-owned IDBI Bank to Canada's Fairfax Financial Holdings for about $5.5 to $5.6 billion. Shares fell 7% after the news, and the deal is the largest foreign takeover of an Indian bank.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
India approved Canada's Fairfax Financial Holdings to buy a majority stake in IDBI Bank, a state-owned lender. The government is selling nearly 61% of the bank for about $5.5 to $5.6 billion. IDBI Bank shares fell 7% after the announcement.
Why it matters
The deal is the biggest foreign takeover of a domestic bank in India, according to the reports. It is part of the government's wider effort to sell stakes in state-owned companies amid fiscal pressures.
Timeline
- Oct 14, 5:21 PM ET: Fairfax Financial was approved to acquire a majority stake in the troubled Indian bank.
- Oct 15, 2:11 AM ET: The Indian government announced a $5.5 billion stake sale to Fairfax, and IDBI Bank shares fell 7%.
- Oct 15, 3:19 AM ET: India approved the takeover, with Fairfax set to buy nearly 61% of IDBI Bank for $5.6 billion.
Coverage
- India approves biggest foreign takeover of domestic bank (Financial Times)
- India’s IDBI Bank falls 7% as government announces $5.5 billion stake sale to Canada's Fairfax (CNBC)
- Update: Fairfax Financial Approved to Acquire Majority Stake in Troubled Indian Bank (Yahoo News)
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