Japan's Mizuho Financial Group's Avendus Deal Hits Roadblock Over Valuation

Mizuho Financial Group's acquisition of Avendus Capital has stalled due to disagreements on valuation and exit options. Talks are ongoing, but a deal has yet to be signed. The delay comes after Japanese lenders have been eyeing assets in India, including Sumitomo Mitsui's purchase of a 20% stake in Yes Bank for $1.6 billion. Mizuho had emerged as the frontrunner for KKR's 63% stake in Avendus, valued at $800 million, and had also acquired Greenhill & Co. in the US and a financial services startup in India.

Title: Mizuho's Acquisition of Avendus Capital Stalls Over Valuation Disagreements

Mizuho Financial Group Inc.'s efforts to acquire a majority stake in Indian investment bank Avendus Capital Pvt. Ltd. have hit a roadblock due to disagreements over valuation and exit options [1]. The potential deal, which would have seen Mizuho become the latest Japanese bank to expand its presence in India, has been delayed despite ongoing negotiations.

The proposed acquisition was initially reported as a significant step by Mizuho in its strategy to build out its businesses in India and the US. In February, Mizuho was identified as the frontrunner to acquire KKR & Co.'s 63% stake in Avendus, valued at approximately $800 million [1]. Other bidders, such as Nomura Holdings Inc. and Carlyle Group Inc., were also reportedly in the running.

The delay comes amidst a broader trend of Japanese lenders eyeing assets in India. Sumitomo Mitsui Financial Group Inc., for instance, recently purchased a 20% stake in Yes Bank Ltd. for about $1.6 billion [2]. This deal, which was cleared by the Competition Commission of India (CCI), underscores the growing interest from Japanese banks in the Indian market.

Mizuho has been actively expanding its global footprint. In the US, the company acquired Greenhill & Co. in 2023, and in India, it acquired a financial services startup last year [3]. Despite these acquisitions, the Avendus deal has faced challenges, with negotiations still ongoing but yet to result in a signed agreement.

The delay in the Avendus acquisition is a setback for Mizuho, which had been positioning itself as a key player in the Indian market. However, the ongoing talks suggest that both parties are still committed to reaching a deal, albeit with some adjustments needed on the valuation and exit terms.

References:
[1] https://www.bloomberg.com/news/articles/2025-09-04/mizuho-s-india-deal-with-avendus-is-said-to-stall-on-valuation
[2] https://www.moneycontrol.com/news/business/markets/yes-bank-shares-gain-2-as-cci-clears-sumitomo-mitsui-s-25-stake-acquisition-13515190.html
[3] https://www.theglobeandmail.com/investing/markets/stocks/MZHOF/pressreleases/34530618/mizuho-financial-group-completes-stock-repurchase-and-announces-share-cancellation/