Mizuho’s Avendus Acquisition Weighs on Shares as Market Digests Costs
Mizuho Financial Group shares fell 2.03% as investors priced in the near-term costs of its $523 million majority stake purchase in Indian financial services firm Avendus. The deal values Avendus at approximately $870 million and marks Mizuho's strategic push into India's high-growth market.
Operational independence remains for Avendus, with retained leadership and branding under Mizuho ownership. The transaction strengthens Japan-India financial ties, potentially accelerating cross-border M&A activity through 2026.
Market reaction reflects concerns over capital deployment and execution risks, overshadowing long-term growth prospects. Mizuho Securities confirmed the acquisition from Redpoint Investments and Avendus co-founder Ranu Vohra, though final terms remain undisclosed.
