MUFG's $4.4B Shriram Finance Deal Ignites India's Financial M&A Wave Amid Reforms

• Mitsubishi UFJ Financial Group (MUFG) acquired a 20% stake in Shriram Finance Ltd. for ₹39,620 crore ($4.4 billion), marking India's largest financial M&A.
• Foreign investment in India's financial sector is surging, with total transactions targeting Indian firms climbing 15% to nearly $90 billion this year.
• Recent major deals include Mizuho-Avendus Capital, Emirates NBD-RBL Bank, SMBC-Yes Bank, and IHC-Sammaan Capital, with Japanese funds being top investors.
• Government reforms, such as allowing wholly-owned foreign insurance firms and easing bank regulations, are fueling this M&A boom.
• Experts predict more foreign capital inflow and positive spillover effects, lowering borrowing costs for Indian financial companies.

Why It Matters: India's financial sector sees a foreign investment surge, driven by major M&A deals and supportive government reforms.