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Last Updated : Jun 25, 2013 09:18 AM IST | Source: CNBC-TV18

Mahindra Satyam to announce merger details today: Sources

CNBC-TV18 learns from sources that both the companies have begun restructuring post the Andhra Pradesh High Court (HC) approval for the merger.


The Mahindra Satyam is likely to meet today to finalise details of its merger with parent Tech Mahindra. CNBC-TV18 learns from sources that both the companies have begun restructuring post the Andhra Pradesh High Court (HC) approval for the merger. The management plans to overhaul the business for the merged entity.


Sources say Anand Mahindra is likely to be named chairman of the merged entity. Vineet Nayyar is likely to be vice chairman, while CP Gurnani is expected to take over post of CEO. However, a decision on CFO is still pending with sources naming Vasant Krishnan as the front-runner. He is currently the CFO of Mahindra Satyam.  


Also, the brand names for the merged entity will be finalised soon. Sources say the company may do away with "Satyam" brand name altogether. It is currently looking at four options with "Mahindra" as anchor brand for the merged entity. 


The company is likely to be restructured into verticals and geography with its own head. The company's focus will be on key verticals like BFSI, telecom, manufacturing, health and pharma. Sources say the company may merge retail, media and entertainment business into one, but verticals like big data, new media and digital may remain separate.   


The company may also hire up to 2,000 additional employees for merged entity. 


A Mahindra Satyam official told CNBC-TV18 that the IT major will combine brand at "logical time" and as per legal process. "The approval from AP HC has definitely accelerated the process of merger," he says adding, "to announce merger at an appropriate time".  

Sources say the company may announce the merger details later in the day.

First Published on Jun 24, 2013 02:17 pm
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