SMFG to Buy India Bank Stake in $1.6 Billion Landmark Deal (2)

Sumitomo Mitsui Financial Group Inc.’sbanking unit agreed to buy a 20% stake in Indian lender Yes Bank Ltd. for about 135 billion rupees ($1.58 billion), as Japanese firms continue their expansion in the world’s most-populous country.

Sumitomo Mitsui Banking Corp. will acquire shares from State Bank of India and other investors for about 21.50 rupees each to become the top shareholder, according to a stock exchange filing Friday. Yes Bank shares surged this week after Bloomberg News reported the Japanese bank was in talks for a minority stake, and last traded at 20.02 rupees in Mumbai.

The Sumitomo Mitsui ...