NEW DELHI: Religare Enterprises — the financial services holding arm of the promoters of Ranbaxy — has decided to drop out of the race for Standard Chartered’s mutual fund business in India. It has decided instead to concentrate on building its presence organically with its Dutch joint venture partner Aegon.
The financial services company has also decided not to pursue GE Money’s consumer lending business, which is up for sale. “Though Religare didn’t formally enter the race for GE Money’s business, it had looked at it as an opportunity. But it is not pursuing the transaction,” said a source close to the development.
StanChart’s asset management business was put up for sale last year and Swiss banking major UBS had finalised a deal worth $120 million to acquire the business. However, this deal came unstuck as UBS didn’t get the mandatory approvals from Indian authorities.
According to sources, Religare was among the list of firms which were formally in the race for StanChart’s mutual fund business. But after evaluation, the management felt it could do a better job by investing the same money to grow the business on its own.
It is learnt that Religare management had a similar reasoning for not pursuing the deal for GE Money. It believes, it can spend the same amount in building its own lending business. Religare Enterprises sources declined to comment.
The financial services company has also decided not to pursue GE Money’s consumer lending business, which is up for sale. “Though Religare didn’t formally enter the race for GE Money’s business, it had looked at it as an opportunity. But it is not pursuing the transaction,” said a source close to the development.
StanChart’s asset management business was put up for sale last year and Swiss banking major UBS had finalised a deal worth $120 million to acquire the business. However, this deal came unstuck as UBS didn’t get the mandatory approvals from Indian authorities.
According to sources, Religare was among the list of firms which were formally in the race for StanChart’s mutual fund business. But after evaluation, the management felt it could do a better job by investing the same money to grow the business on its own.
It is learnt that Religare management had a similar reasoning for not pursuing the deal for GE Money. It believes, it can spend the same amount in building its own lending business. Religare Enterprises sources declined to comment.
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