Mizuho Financial Group’s efforts to buy a majority stake in Indian investment bank Avendus Capital have hit a roadblock over disagreements on valuation and the right exit option for the KKR portfolio company, according to people familiar with the matter.

Mizuho was on the verge of buying a majority stake in Avendus in what would be the latest acquisition by a Japanese bank in India, people familiar with the matter said in June.

While talks have hit a snag, considerations are ongoing, and the parties are still trying to sign a deal, the people said.

Representatives for KKR, Avendus and Mizuho declined to comment.

The delay on the potential transaction was first reported by Moneycontrol.

Japanese lenders have been recently eyeing assets in India. A deal for Avendus would follow Sumitomo Mitsui Financial Group’s purchase of a 20% stake in Yes Bank for about 135 billion rupees ($1.6 billion).

KKR bought a stake in Avendus in 2015 and invested more capital in the business in 2017. Since then, the firm has also bolstered its wealth management, lending and equity capital market operations. The Avendus management team has a say in any transaction since they drive businesses, including investment banking.

Mizuho had emerged as the frontrunner for KKR’s 63% stake in Avendus that valued the firm at about $800 million, it was reported in February. Other bidders for the investment bank included Nomura Holdings and Carlyle Group, people familiar with the matter have said.

Mizuho has been pushing overseas and building out its businesses in India and the U.S. In the U.S., it bought Greenhill & Co. in 2023, and in India, it acquired a financial services startup last year.