In their desire to get a head start over each other in India, Wall Street investment banks have forged joint ventures with local partners. Three US banks JP Morgan, Merrill Lynch and Goldman Sachs have adopted this strategy. Surprisingly, all three have agreed to remain minority shareholders in the ventures even though the law permits them a majority holding. Pressures may be building, though, for the US banks to buy out their local partners.
“It’s not easy to find an ideal partner in joint ventures,” says Charles Alexander, deputy managing director of ICICI Securities (I-sec), in which JP Morgan now has a 40% holding.
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