Cement major ACC said on Friday that it was exploring the possibility of a merger with Ambuja Cement.
In a statement, ACC said its board had decided to "commence an evaluation" so as to combine the strengths of both businesses in a manner that will benefit all stakeholders.
A special committee of directors, most of whom are independent directors, have been constituted to commence the evaluation.
ACC stressed that no decision had been taken so far and the board would take a final call on the matter.
LafargeHolcim is the parent company of both ACC and Ambuja.
LafargeHolcim owns 63 percent in Ambuja Cements and has an overall stake of 54.53 percent in ACC. In November last year, the parent company had increased its stake in ACC and Ambuja Cements by 4 percent and 2 percent respectively.
The merger has been on the cards since 2013, when LafargeHolcim opted for a major rejig. The parent company took a stake in Ambuja Cements, which in turn owns a 50.05 percent stake in ACC.
In June last year, LafargeHolcim struck a deal to divest assets previously under Lafarge India. LafargeHolcim had agreed to sell Lafarge India Pvt Ltd to Nirma Ltd for Rs 9,400 crore including debt, as part of a deal to complete the India leg of the global merger of Lafarge and Holcim.
More to follow...
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