Fairfax Financial buys a majority stake in India's IDBI Bank for $7.9 billion

Fairfax's stake in IDBI Bank

60.72 %

The Canadian company takes a 60.72 per cent stake, bought from the Indian government and Life Insurance Corp. of India after a two-stage bidding process.

Why it matters

India's government calls it the largest foreign direct investment deal in the country's banking sector. IDBI Bank shares rose 9.07 per cent after the announcement.

Once the deal closes, the Indian government keeps a 15 per cent stake in the bank and Life Insurance Corp. of India keeps 19 per cent.

Before it closes

• Reserve Bank of India approval
• Competition Commission of India clearance
• An open offer to shareholders, unless exempted

The deal still needs the approval of the Reserve Bank of India and of India's competition regulator. Fairfax must keep the bank's name and brand for at least three years.