 "FIPB rejects BNP Paribas' Sharekhan acquisition")
The Foreign Investment Promotion Board (FIPB) on Tuesday rejected French financial services major BNP Paribas’ proposed Rs 2,000-crore acquisition of retail-focused brokerage Sharekhan.
The Sharekhan deal was among seven transactions rejected by FIPB, according to a June 14 release on the department's website. FIPB met on May 20. The reasons for rejection weren't disclosed.
“We do not have an official communication from FIPB about the rejection or the reasons,” said a spokesperson of BNP Paribas.
“The rejection could be due to technical reasons. BNP Paribas plans to reapply once it obtains more information,” a source said. The French bank had agreed to acquire Mumbai-based Sharekhan in July last year from its shareholders, which included Baring Private Equity, Samara Capital and IDFC. The deal was pegged at a little over Rs 2,000 crore. Private equity majors Warburg Pincus and General Atlantic were also in the fray to acquire Sharekhan.
BNP Paribas had got regulatory approvals from the Securities and Exchange Board of India, Reserve Bank of India and Competition Commission of India.
The Sharekhan deal was BNP’s second play in the retail broking space. In 2007, the French bank had picked up 34 per cent stake in Kochi-based Geojit Securities.
The Sharekhan deal was among seven transactions rejected by FIPB, according to a June 14 release on the department's website. FIPB met on May 20. The reasons for rejection weren't disclosed.
“We do not have an official communication from FIPB about the rejection or the reasons,” said a spokesperson of BNP Paribas.
“The rejection could be due to technical reasons. BNP Paribas plans to reapply once it obtains more information,” a source said. The French bank had agreed to acquire Mumbai-based Sharekhan in July last year from its shareholders, which included Baring Private Equity, Samara Capital and IDFC. The deal was pegged at a little over Rs 2,000 crore. Private equity majors Warburg Pincus and General Atlantic were also in the fray to acquire Sharekhan.
BNP Paribas had got regulatory approvals from the Securities and Exchange Board of India, Reserve Bank of India and Competition Commission of India.
The Sharekhan deal was BNP’s second play in the retail broking space. In 2007, the French bank had picked up 34 per cent stake in Kochi-based Geojit Securities.