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Merrill Boosts Stake in Indian Joint Venture, Targets Wealth Management
Merrill Lynch is to pay $500 million to boost its stake in its Indian joint venture to 90 per cent as it targets growth in both investment b...
Merrill Lynch is to pay $500 million to boost its stake in its Indian joint venture to 90 per cent as it targets growth in both investment banking and wealth management in the subcontinent.
Merrill said the increased stake in DSP Merrill Lynch would enable it to build its presence as one of the leading securities firms in India.
"As a result of this change we will be able to accelerate our plans for growth in this robust market," said Merrill Lynch chief executive Stan O'Neal in a statement.
Merrill Lynch is buying part of this stake from local co-founder Hemendra Kothari.
Mr Kothari will continue as chairman but give up management of the firm. He will also become vice chairman of Merrill Lynch International.
As part of the deal, DSPML Fund Managers, a wholly-owned asset management arm of DSP Merrill Lynch, will continue to be operated as a venture jointly owned by DSP Merrill Lynch with 40 per cent and Mr Kothari and related entities with 60 per cent.
