Canara Bank (BSE:532483) agreed in-principle to acquire 21.52% stake in Syndicate Bank (BSE:532276) for approximately INR 18.6 billion on September 13, 2019. Under the terms of the acquisition, Canara will issue 158 equity shares for every 1000 shares of Syndicate Bank for INR 10 each share. The purchase consideration is still subject to regulatory approvals. As of June 30, 2019, Government of India held 70.62% stake in Canara Bank and 78.48% stake in Syndicate Bank. Grievance Redressal Committee has submitted its report that there is no change in the exchange ratio on March 17, 2020. The transaction is subject to applicable approvals. The Board of Directors of Canara Bank and Syndicate Bank gave "in-principle approval" for the transaction on September 13, 2019. Department of Financial Services of Ministry of Finance approved the transaction on November 13, 2019. As of March 5, 2020 the government has approved the transaction. Tony Katz, Sohail Ali, Amar Maan and Shabaz Ahmed of DLA Piper LLP acted as a legal advisor to Canara Bank and Syndicate Bank.

Canara Bank (BSE:532483) completed the acquisition of 21.52% stake in Syndicate Bank (BSE:532276) on April 1, 2020.