Kotak Mahindra Capital, the investment banking arm of Kotak Mahindra Bank, today said it has entered into an exclusive strategic alliance with Sumitomo Mitsui Banking Corporation and SMBC Nikko Securities for cross-border M&A (merger and acquisition) advisory services between India and Japan.
The three financial services firms aims to play an active role in the growing cross-border M&A activity between the India and Japan by leveraging their combined advisory capability, knowledge of local markets and long-standing corporate relationships.
Sumitomo Mitsui Banking Corporation is the core financial institution of Sumitomo Mitsui Financial Group, which is the second largest financial services group in terms of market capitalisation in Japan. SMBC Nikko is one of the largest full-service securities and investment banking firms in Japan.
The two firms have a combined team of over 500 investment banking professionals in Japan and have advised on 90 transactions with announced deal value of over $23 billion in calendar year 2012.
In 2010, Kotak and Sumitomo Mitsui Banking Corporation had entered into an agreement for business cooperation across various businesses of mutual interest, subject to relevant regulations. Since then, both groups have collaborated in and are working on a number of areas such as trade finance, treasury products, corporate customer referrals, asset management and alternate assets.
The cooperation is now being extended to investment banking to complete the bouquet of offerings, serving corporates in India and Japan.
"Japan is a priority market for cross-border M&A with India, and the growing relationship and synergies between the two countries will only continue to get stronger. We are confident that through this alliance we can offer the best opportunities, advice and solutions to our clients," TV Raghunath, managing director and chief executive of Kotak Investment Banking, said in a statement.
In calendar year 2012, Japan ranks among the top three acquiring nations into India and three of the 10 largest M&A transactions involving India took place in this corridor.
Kotak and GCA Savvian Corporation have mutually concluded their exclusive strategic cooperation agreement for M&A advisory services between India and Japan.