Nomura’s Lehman buy will save 175 Indian jobs
Nomura, the Japanese securities group, is understood to have reached a deal to buy the Asian operations of bankrupt US financial giant Lehman Brothers for $225 million, potentially saving 3,000 jobs.business Updated: Sep 22, 2008 20:46 IST
Nomura, the Japanese securities group, is understood to have reached a deal to buy the Asian operations of bankrupt US financial giant Lehman Brothers for $225 million (1,021 crore), potentially saving 3,000 jobs.
The proposed deal, which would cover Lehman’s investment banking services, equity research, and institutional brokerage services in Mumbai, will help save at least 175 jobs.“The deal is done. We are waiting for the details,” said an employee from Lehman’s Mumbai office.
Nomura succeeded in its bid for Lehman’s Asian operations on Monday, French news agency AFP said, quoting unidentified sources. NM Rothschild is acting as adviser for Lehman to sell these Asia assets. Nomura trounced Barclays in the fight for the control of Lehman’s Asian operations. Standard Chartered Bank and Korean major Samsung Group were also in the race.
Nomura, which began operations in India in April, 2007, wants to build up its institutional broking business.“We have a small 20-member team. We want to grow the business as India offers exciting long-term opportunities,” said a source close to Nomura’s Indian operations.
An email sent to Nomura’s headquarters in Tokyo remained unanswered. Calls to Nomura’s offices in Tokyo rang unanswered on Monday evening.
Lehman earned over $1.4 billion in revenues from its Asia-Pacific operations during the first half of this calendar year. This approximately contributes to 20 per cent of the bank’s overall revenues. Barclays had bought Lehman’s north American investment banking and capital market business for $1.75 billion.
Both the firms are fighting for the control of Lehman’s European operations. Lehman Brothers filed for administration in Europe and Chapter 11 bankruptcy protection in the US early last week after failing to agree a full sale.
(With inputs from Mauli Buch)