War has not disrupted the India-UAE investment corridor, with Emirates NBD moving full steam ahead with its planned USD 3 bn acquisition of a 60% stake in Mumbai-based private sector lender RBL Bank, the Economic Times reports, citing people it says are in the know. The bid reportedly secured approval from the Reserve Bank of India (RBI) a week after the Central Bank of the UAE signed off on the transaction.

The RBI approved Emirates NBD’s acquisition of up to 74% of RBL, Reuters reports, citing a statement from RBL. Voting rights, however, will be capped at 26%.

What’s next? The acquisition is reportedly on track for approval from the Securities and Exchange Board of India, the country’s capital markets watchdog, with a mandatory open offer likely as early as this week.

BACKGROUND- The takeover ran into regulatory friction earlier this year, triggering change-of-control reviews across India’s capital markets stack. The transaction — structured via a preferential equity issue of roughly INR 268.5 bn — also activates a mandatory open offer for up to an additional 26% at INR 280 per share. Emirates NBD shareholders signed off in February on folding its three-branch India network (Mumbai, Gurugram, and Chennai) into RBL.

REMEMBER- If the acquisition goes through, it will see Emirates NBD become the first foreign lender to take majority control of a profitable listed Indian bank.

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