Citigroup has acquired a 9.27% stake in India’s HDFC. The deal will add to Citigroup’s 3.59% stake that it already has in HDFC. The Rs 3,020-crore deal, once cleared by the regulatory authorities, will make Citigroup the biggest shareholder in HDFC. Citigroup is buying the shares from UK Insurer Standard Life. (Economic Times)
Meanwhile, HDFC holds a 21.99% in HDFC Bank (NYSE: HDB). While Citi will emerge as the biggest shareholder in HDFC, it will have no direct holding in HDFC Bank, in which DBS, the Singapore-based bank, acquired over 4per cent. In the past, the market has often speculated about a merger of HDFC and HDFC Bank. In the medium-term, such speculation could be rekindled.