Sun Pharma plans $12bn Organon buy with possible SBI backing
Sun Pharma is making headlines with its plan to buy US-listed Organon & Co. for a whopping $12 billion, and the State Bank of India (SBI) might chip in up to $1 billion to help make it happen.
SBI is talking with big global banks like Citigroup, JPMorgan, and Mitsubishi UFJ about the financing.
If it goes through, this will be one of the biggest overseas buys ever by an Indian company.
Indian banks backing outbound deals
SBI's possible involvement shows how Indian banks are finally getting comfortable backing local companies as they expand abroad.
Until February, strict rules kept them on the sidelines for big takeovers like this.
But after regulations changed in February, SBI started teaming up on major deals, including scouting for more mergers and acquisitions opportunities with Mitsubishi UFJ, so you can expect to see more Indian firms going global with homegrown support.