ENBD eyeing another bank acquisition in India? India is preparing to invite bids as early as this month for an INR 595 bn (USD 7.1 bn) majority stake sale in Mumbai-based and state-owned IDBI Bank, Bloomberg reports. Emirates NBD has received “fit-and-proper clearance” from the central bank for its bid. Mumbai-based Kotak Mahindra Bank and Toronto’s Fairfax Financial Holdings are also bidding.

The 60.72% stake — 30.48% held by the government and 30.24% by state-owned LifeIns. Corporation of India (LIC) — includes management control of the bank. Talks with the three bidders are in advanced stage and the formal bidding process could open before the end of the year, the news outlet added.

Timeline: The government aims to finalize a strategic buyer by March 2026, although delays linked to clearance processes could shift timelines. The shortlisted bidders are currently conducting due diligence.

Why it matters: If completed, the stake sale would mark one of India’s largest privatizations in the banking sector in decades. Bloomberg seems to think Kotak Mahindra Bank is the stronger contender but is unlikely to proceed if valuation expectations rise significantly.

Our take: Emirates NBD is continuing to evaluate avenues in Indian banking following its announcement that it would seek a majority stake in RBL Bank. ENBD is looking for a strategic foothold in India's capital market as the country’s credit needs are likely to grow exponentially in the coming years.

Other Gulf investors are keen for a piece of India's financial sector. Earlier this year, Abu Dhabi-based International Holding Company picked up a controlling stake in Sammaan Capital for USD 1 bn.

IN OTHER M&A NEWS-

Adia offloads more of its stake in Galderma: The Abu Dhabi Investment Authority (Adia), Swedish private equity firm EQT, and Singapore’s Auba Investment sold an additional 10% stake in Swiss skincare firm Galderma to cosmetics company L’Oréal through an off-market block trade, according to a press release. The transaction was sealed for an undisclosed sum, and is set to close in 1Q 2026, remaining subject to regulatory approvals.

The details: The transaction brings L’Oréal’s stake in the Swiss firm to 20%, with no plans to further increase it in the near future. The French company will fund the transaction through its available liquidity and credit lines. Galderma's board will also weigh up nominating two directors from L'Oréal to replace the EQT-led consortium's representatives.

REMEMBER- Adia and its partners offloaded an 8.4% stake in Galderma in October through a block trade worth CHF 2.6 bn (USD 3.3 bn), while Galderma repurchased 2.38 mn of its shares from the same consortium in May for a total amount of CHF 232.5 mn (USD 281.2 mn) as part of an accelerated bookbuild. The consortium had previously divested a 6.3% stake in the Swiss firm in March, by which time their stake was reduced to 50%, preceded by a USD 1.2 bn stake back in September 2024 and an initial 10% offload in August that same year.

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