Mizuho to buy majority stake in India's Avendus from KKR for $523 mn deal

Japan's Mizuho Securities on Wednesday said it will buy a majority stake in Indian investment bank Avendus from U.S. investment firm KKR for up to 81 billion yen ($523 million).

The buyout adds to Japanese financial institutions' growing footprint in India, where a fast-growing economy has made it an attractive target for Japanese firms facing an ageing and shrinking population at home.

Mizuho Securities, part of Japan's third-largest banking group, Mizuho Financial Group, said it will buy 61.6% to 78.3% of Avendus shares and make the bank a consolidated subsidiary.

Mizuho has been fielding an increasing number of enquiries from banking clients concerning expansion into India, Chief Executive Masahiro Kihara told a press briefing in Tokyo.

The acquisition will strengthen Mizuho's ability to collaborate across regions, including with U.S. M&A advisor Greenhill which it bought in 2023, Kihara also said.

"Better cross-regional collaboration has been one of the great things about the Greenhill acquisition. On the investment banking side we thought India was a missing piece," Kihara said.

Avendus CEO Gaurav Deepak said he expects to expand hiring as a result of the partnership.

"We expect to invest far more in industrials, healthcare, infrastructure and energy," Deepak said at the briefing.

Larger Japanese rival Sumitomo Mitsui Financial Group bought 24.2% of Indian lender Yes Bank earlier this year.

KKR first invested in Avendus in 2016.