Kotak Mahindra Bank set to acquire ING Vysya Bank, awaits regulatory approval

Kotak Mahindra Bank, the private sector lender, said on Thursday that its board had approved an all-stock deal to acquire local rival ING Vysya Bank, in which Dutch lender ING Group owns about 43 per cent stake.

The board approved a swap ratio of 725 shares of Rs 5 each of Kotak Mahindra for every 1,000 shares of ING Vysya of Rs 10, the Mumbai-based bank said in a statement.

The private sector lender added that the deal is subject to regulatory approvals.

Shares of Kotak Mahindra Bank and ING Vysya Bank surged over seven per cent on the Bombay Stock Exchange (BSE) on Thursday after a news report claimed that a merger between the two is on the cards.

(Reuters)