Merger Of Ing Vysya And Kotak Mahindra Bank
The banking industry is largely fragmented in India with more than half of the commercial banks being state-run entities. Also amongst them, only two of them figure among the world’s 100 largest banks. Besides, there have not been many mergers in Indian banking space and the merger of ING Vysya Bank with Kotak Mahindra Bank is one of the major deals since private sector leader ICICI Bank’s takeover of Bank of Rajasthan about four years ago and Axis Bank acquiring erstwhile UTI Bank. The Kotak Mahindra and ING Vysya, both are private sector banks, run by professional managers, and similar in size with a degree of commonality in business and risk approaches. The merger of ING Vysya Bank with Kotak Mahindra Bank is one of the major deals in the private sector banking space The Deal: The proposed merger is an all-stock merger. 1000 shares of Rs.10 each of ING Vysya will receive 725 shares of Rs.5 each of Kotak Mahindra Bank. This exchange ratio indicates an i...