Biggest ever banking M&A deal? Japanese banking giant Sumitomo Mitsui closer to taking control of Yes Bank, in talks with SBI to buy stake

Japanese banking giant SMBC is in advanced talks to acquire SBI's 26% stake in Yes Bank, potentially becoming the biggest foreign acquisition in Indian banking. The deal at INR 50-55 per share would value Yes Bank at INR 42,000 crore and give SMBC controlling interest. Negotiations include technology sharing agreements and priority lending to Japanese businesses in India. RBI has given preliminary in-principle approval for SMBC to increase its current 4.8% stake beyond 10%. The acquisition would mark India's largest banking M&A, surpassing HDFC's merger. For SBI, this exit yields 3x returns on its 2020 bailout investment. Yes Bank would gain global expertise in corporate banking while retaining its Indian management structure. The deal could reshape competition in India's mid-sized corporate banking segment.