Kotak Bank will buy ING Vysya bank in an all-stock transaction that gives ING Vysya shareholders 725 shares of Kotak blogBank if they own 1000 shares of ING Vysya.

This will create a larger bank in assets; the new Kotak bank will be about 50% larger. However, the price increase in Kotak’s shares (to Rs. 1200) might have fully factored in the growth increase, without allowing for any issues in the merger going forward.

All ING Vysya branches and employees will become Kotak branches and employees” after the deal is completed,” the banks said in a statement yesterday. “Congratulations @udaykotak on a brilliant merger move. The enormous synergies are obvious,” industrialist Anand Mahindra tweeted after the deal was announced.  Continue reading

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