Kotak Mahindra bank is ready to acquire ING Vysya as it announced on 20th November’2014. Kotak Mahindra is one of the fourth largest bank in India as per the Capitalization it has. Kotak Mahindra is an Indian private sector Bank. ING Vysya is a multinational bank. It has various branches in India.
The deal between Kotak and ING started around 7years ago. Kotak Mahindra’s executive Uday Kotak and ING’s former chief executive Michel Tilmant met at Grand Hyatt hotel in Mumbai in 2007. They discussed about the business in India. At that time, the ING group’s executive decided to buy 1.8% of s of Kotak Mahindra. ING’s plans was to invest in India other than Vysya bank.
So how come this deal took place at the first place? How reversal of the deal happened?
The reversal took place at the time when ING was keen in investing in Kotak there credit crisis in Dutch. This led down the ING group to stop the investment in Kotak and it helped to Dutch government. Then the Kotak Mahindra bank announced last month to buy all the stocks of ING vysya bank. The transaction was values of around $2.4 billion. ING would have 6.5% stock of Kotak and it would be nominating one of its member to the head. The other thing would be same as what is going.
Who helped to reverse the deal in the favor of just Kotak Mahindra bank only and none others?
Many banks were interested in ING Vysya. ING Vysya has 573 branches and 64,582Cr. In assets. It was Kotak who swung the deal. The deal was lower than expected. This deal came off after 18 months. Nor Uday Kotak executive of Kotak Mahindra and nor Ralph Hamers CEO of ING made the successful deal. It was Vaughn Rictor who helped this acquisition to be completed. Rictor is head of ING Direct, Australia. Some sources reveal that Rictor was the major player in this deal.
Vaughn Richtor was born in Chennai and he was head of ING Vysya bank before the work of Australia was given to him. So he has a long association with Kotak Mahindra and he knows about the culture and its people. So Richtor convinced the board to and accepted the deal. No any bid from other banks were taken. The bank will run as it is and no changes will be made. Now the biggest reason for the employee is Job Security. The employees wants the Kotak Mahindra to guarantee their job in case in future any changes would happen.
Hope you liked the article and got to know about how the deal took place at the first place. Rictor was responsible for the deal and he was having quality of a Manager and Leadership which help him to convince and persuade the board members of the ING Vysya bank. Now look on further about this acquisition.