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March 11, 2022

HSBC AMC gets nod for $425m acquisition of L&T Investment in India

HSBC Asset Management India (HSBC AMC) has secured regulatory approval from the Competition Commission of India (CCI) for its acquisition of L&T Investment Management (L&T AMC).

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The $425m deal, which was first announced in December 2021, will see HSBC AMC purchase 100% share capital of L&T AMC from L&T Finance.

CCI said in a statement: “CCI approves acquisition of 100% share capital of L&T Investment Management by HSBC Asset Management (India) Private Limited (HSBC AMC).”

L&T AMC is a wholly owned subsidiary of L&T Finance and the investment manager of the L&T Mutual Fund.

As part of the transaction, sponsorship, trusteeship, management, and administration of L&T Mutual Fund schemes managed by L&T AMC will change.

These schemes will be managed and operated by HSBC AMC, while HSBC Trustee will be named as the trustee of the L&T Mutual fund.

“Pursuant to the proposed transaction, the L&T MF will comprise part of and be considered to form an integral part of the HSBC Mutual Fund schemes (HSBC MF),” the fair trade regulator added.

L&T AMC, which maintains a footprint across 65 locations across India, also manages digital platforms.

The deal forms part of HSBC’s strategic plan to expand its wealth and asset management presence in the Asian region.

The purchase of L&T AMC is expected to help the British lender bolster its asset management capabilities in India to serve its Indian customers as well as its increasing non-resident Indian clients worldwide.

In November last year, a report by Reuters said that the bank is weighing a re-entry to India’s private banking space to tap into the country’s evolving affluent segment.

The British lender shuttered its Indian private banking business in 2015 following a strategic review of its global private banking operations in the country.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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