HSBC’s Indian asset management unit is buying the mutual fund arm of India’s L&T Finance Holdings for $425m to strengthen its local operations, the bank said on Thursday.
HSBC intends to merge L&T Investment Management Limited (LTIM) with HSBC Asset Management (India) Private Ltd, its existing $1.6 billion asset management business in India, HSBC and L&T said in separate statements.
“Combining LTIM with our existing Indian asset management business gives us the scale, reach and capabilities to capture some of the 15-20% annual asset management market growth expected in India over the next five years,” HSBC CEO Noel Quinn said.
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Dinanath Dubhashi, managing director and CEO of L&T Finance Holdings, said the HSBC deal was in line with L&T’s aim of “unlocking value” from its subsidiaries, adding this would help it to strengthen its balance sheet for its lending business.
L&T Investment Management Limited has assets under management of over 800 billion Indian rupees ($10.65 billion) and offers a basket of equity, fixed income and hybrid schemes to both retail and institutional investors.
Source: Reuters
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