The Competition Commission of India has approved the proposed acquisition of a majority stake in RBL Bank Limited by UAE based Emirates NBD Bank, clearing the way for the UAE-based lender to take control of the Indian private sector bank.
The approved transaction envisages Emirates NBD acquiring between 51 percent and up to 74 percent of RBL Bank’s shareholding. This will be carried out through a combination of a mandatory open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, representing up to 26 percent of the expanded voting capital of RBL, a preferential allotment of equity shares amounting to up to 60 percent of RBL’s total paid-up equity share capital, and the proposed amalgamation of Emirates NBD’s Indian banking operations with RBL Bank.
Emirates NBD’s banking operations in India are currently conducted through three branches operating in branch mode. These operations will be merged into RBL Bank on a going concern basis, subject to regulatory approvals.
Emirates NBD is a public joint stock company listed on the Dubai Financial Market and headquartered in Dubai. The banking group has operations across several countries, including India, and offers services spanning retail, corporate and institutional banking, Islamic banking, investment banking, private banking, asset management, global markets and brokerage.RBL Bank is a listed Indian private sector lender providing banking, financial and insurance services, including deposit-taking, lending, digital payments and cash management. It also operates an IFSC banking unit at GIFT City, which functions as an overseas branch.
