SMFG Said to Face $670 Million Tax on Fullerton India Deal
- SMFG bought 75% stake in company for $2 billion in 2021
- India’s request leaves Japanese lender with much higher costs
This article is for subscribers only.
Sumitomo Mitsui Financial Group Inc. is facing a 55 billion rupee ($670 million) tax bill from India on its roughly $2 billion acquisition of Fullerton India Credit Co., far outweighing what the Japanese lender has set aside, according to people familiar with the matter.
The South Asian government’s tax department has asked the bank to pay the amount on behalf of seller Fullerton Financial Holdings Pte., arguing that it should have withheld the sum during the acquisition, the people said, asking not to be named as the information isn’t public.