The board of directors of HDFC and HDFC bank on Monday have decided on the merger of the former with the latter. This will be the biggest merger in India’s corporate history, and the largest banking sector merger and acquisition globally since 2007.
Housing Development Finance Corp. (HDFC) is the underwriter of homes for millions of Indians. Meanwhile, HDFC bank is India’s largest private sector bank by market capitalization.
The companies have a joint-family arrangement. As per the terms of the merger, shareholders of HDFC will get 168 shares of HDFC Bank for every 100 shares of HDFC held.
HDFC chairman Deepak Parekh said that the merger makes the combined entity strong enough to counter competition and also…
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