Shriram Group on Thursday said discussions with the IDFC Group on merger of certain businesses are still on and the exclusivity period for talks has been extended till November 8.
As per a confidentiality, exclusivity and standstill agreement, the two companies are in the process of evaluating potential combination of certain businesses and subsidiaries/associate companies of the Shriram Group engaged in credit and non-credit financial services with IDFC Group. The CES had 90 days exclusivity period from July 8.
“In this connection, we inform you that discussions between Shriram Group and IDFC Group regarding the potential combination and the due diligence exercise is continuing and the parties have agreed to extend the exclusivity period up to November 8, 2017,” Shriram Group said in a regulatory filing.
IDFC Bank in a separate filing said “given the extensive due diligence process involved and the ongoing discussions, the parties have agreed for extension of the CES Agreement up to November 8, 2017.”
Piramal Enterprises Chairman Ajay Piramal, also the chairman of Shriram Capital, in September said that the deal structure of the proposed merger of Shriram Group and infra lender IDFC was being looked at.
If the merger deal is to go without any hurdle, the two entities would then create the largest retail-focused bank in the country.
Also Read: IDFC-Shriram Merger: Shriram Transport May Be The Spanner In The Works
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