By P.R. Venkat 
 

HSBC Holdings PLC has entered into an agreement to buy the mutual fund business of L&T Finance Holdings Ltd. for $425 million as part of the U.K. bank's efforts to build its asset management business in India.

The acquisition will be made by HSBC Asset Management (India) Pvt. Ltd., L&T Finance said late Thursday.

The operations of L&T Investment Management Ltd., which is the manager of the mutual fund business, will be merged with that of HSBC's existing asset management business in India, which had $1.6 billion assets under management as of end September.

"The transaction with HSBC is in line with our strategic objective of unlocking value from our subsidiaries which will help us to strengthen our balance sheet for our lending business," said Dinanath Dubhashi, chief executive of L&T Finance.

J.P. Morgan and Citigroup advised L&T Finance on the deal.

 

Write to P.R. Venkat at venkat.pr@wsj.com

 

(END) Dow Jones Newswires

December 23, 2021 19:08 ET (00:08 GMT)

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