JC Flowers Asset Reconstruction Company in talks to merge into Assets Care

JC Flowers Asset Reconstruction Company (JCF ARC) is in advanced talks for a stock-swap merger with ACRE ARC, under which JCF ARC would wind down its India operations and surrender its ARC licence to the RBI. JCF ARC, which had acquired Yes Bank's stressed loan portfolio of about Rs 48,000 crore for Rs 11,200 crore in December 2022, has resolved nearly Rs 38,000 crore of NPAs and will transfer residual security receipts valued at around Rs 2,000 crore to ACRE's books. The merger reflects consolidation pressure on private ARCs from the RBI's higher capital norms and growing competition from government-backed NARCL.