Goldman Sachs and India's Shriram Credit have called off an agreement, which would have given the U.S. investment bank a 20 percent holding in the Indian firm, the Times of India said on Monday.
Goldman had signed the deal in March to buy the stake for 3 billion rupees in the non-banking financial services company that would have given Goldman an indirect entry into the equity and commodity brokerage business in India.
“Goldman Sachs is among those assessing the losses they would incur because of the subprime issue. They were delaying things here and we said drop it,” the newspaper quoted Shriram group Chairman R. Thiagarajan as saying.
A spokesman for Goldman declined comment on the report, while Shriram was not immediately available.
Citing sources familiar with deal, the newspaper said the deal failed after Goldman wanted to scale down the valuation.
Under the deal the Shriram group was to transfer the brokerage and distribution services business to Shriram Credit, the paper said.(Reuters)