HSBC and Merill to form online bank and
broking company
London: In a step that is designed to
leverage the advantages and reach of the internet, two giants have got together to form a
joint venture.
International banking group, HSBC Holdings, and top US-based merchant banking firm, Merill
Lynch International, teamed up together to form a $1 billion capitalised joint venture,
that may well become the world's largest banking and broking firm. The joint venture will
serve consumers across the world, except the US, where there are legal hurdles in the way.
The new company -- Merill Lynch HSBC -- will combine the global investment reach and
research of Merill, with HSBC's international presence and processing abilities.
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Largest commercial real estate deal in Mumbai falls through
Mumbai: The largest commercial space real
estate deal in Mumbai, estimated at Rs. 26.75 crore, has fallen through. The deal,
envisaged the sale of an entire floor at the Mafatlal controlled, Mafatlal Centre at the
heart of the central business district in Mumbai, to the French bank, Credit Agricole
Indosuez. The property is owned by Mafatlal Industries, which is currently a sick company
and has been referred to the BIFR.
The deal fell through, after IDBI, a major creditor financial institution of the
Mafatlals', and which has a floating charge on the property, failed to give the requisite
no-objection certificate for the sale.
The deal which was entered into in August last year, was structured in such a way as to
use the proceeds of the sale to clear a major liability of the Mafatlals' with the Global
Trust Bank, that had a mortgage on the property.
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Three major consortia in race for JNPT chemical terminal
Mumbai: Three major consortia -- Indian Oil
Tanking-Indian Oil Corporation-IBP Ltd, United Storage Tanking Terminal-IMC-Van Ommeren
and the Dredging International-IPEM N.V. combine -- are in the race for bagging the
proposed Rs. 2,000-crore marine chemical terminal at Jawaharlal Nehru Port on a `build,
operate and transfer' (BOT) basis.
The proposed marine chemical terminal is one of the major projects to be constructed at
any of the 11 major ports in the country. When commissioned, the terminal will handle 15
m.t. of cargo per annum, substantially adding to the capacity of JNPT.
The terminal assumes significance in view of the Government's decision to corporatise
JNPT, which was constructed mostly on the strength of loans from the World Bank, and
inter-port borrowings from Mumbai and Kandla major ports. An increased throughput would
enable the JNPT to wipe out a big chunk of its loan liability faster, thus helping the
Government could then decide the capital base of the corporatised entity, the extent to
which the outstanding loan should be converted into equity and the debt-equity ratio of
the company, the sources said.
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Stanchart may take over ANZ Grindlays Indian operations
Mumbai: As part of Standard Chartered Bank's
(Stanchart) plan to buy out the MESA (Middle East and South Asia) operations of ANZ
Grindlays -- a deal that is likely to be signed over the next fortnight, Stanchart is set
to buy out the Indian assets of ANZ Grindlays. The valuation of ANZ Grindlays' India
operations is believed to be pegged around $600 million. However, this could not be
confirmed.
The bank's external affairs chief in London, Alex Blake Milton, is camping in Mumbai to
oversee the "takeover". According to sources, the proposed "takeover"
-- which is bound to face strong protests from trade unions -- is a strategic fit both
culturally as well as business-wise. ANZ Grindlays' strength is corporate and investment
banking while Stanchart is strong on retail banking and treasury business.
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