Edelweiss not to go ahead with Religare acquisition

Edelweiss had signed an agreement to acquire Religare’s securities business in December 2017 which was subject to regulatory clearance.

On December 20, 2017, Edelweiss had announced plans to acquire Religare’s brokerage business which includes securities as well as commodities broking and depository services.  The two entities had signed a binding agreement to pursue the acquisition deal. 

Since Religare was unable to secure the required regulatory approvals and fulfil the various terms agreed upon in the binding agreement within the deadline of March 15, the deal has closed, said Edelweiss in a regulatory filing.

Also, Religare with Fortis is being investigated by various agencies including the Serious Fraud Investigation Office (SFIO) for financial irregularities.  The billionaire brothers, Malvinder Singh and Shivinder Singh are promoters of the company.

Meanwhile, in early trade, the stock of Edelweiss Financial Services was quoting Rs. 273.30 per share, up by 1.28 per cent, while Religare Enterprises was at Rs. 56.65 per share, down by 2.50 per cent on Friday.