Shriram City group today said discussions with IDFC group on merger of certain businesses are still on and the exclusivity period for the talks has been extended till November 8.
As per a confidentiality, exclusivity and standstill (CES) agreement, the two companies are in the process to evaluate potential combination of certain business and subsidiaries/associate companies of the Shriram Group engaged in credit and non-credit financial services with IDFC Group.
The CES had 90 days 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 on-going 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 be creating the largest retail-focused bank in the country.
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