Deals
India Poised for Lender Megamerger With Top Returns: Real M&A
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Investors are wagering that India’s biggest bank and its largest mortgage lender will pursue a megamerger that would deliver returns unmatched by any peer worldwide.
Shares of HDFC Bank Ltd. and its potential partner Housing Development Finance Corp. have climbed since July, when India’s central bank eased lending and reserve regulations. A merger “seems inevitable,” according to research firm Ambit Capital Pvt., after India issued new rules that will allow Housing Development to maintain a lucrative exemption from reserve requirements.