Reports of a planned merger between Holcim’s Indian subsidiaries ACC and Ambuja Cements continue despite Holcim’s insistence that no such plans are afoot. The online Indian newspaper, Daily News and Analysis (DNA), describes how ACC is consolidating its assets, including limestone mining companies and a slag cement plant, ahead of its eventual merger with Ambuja.
Holcim hired Hewitt Associates in August last year to suggest restructuring changes, which reportedly includes consolidating all ACC business units.
Currently, Ambuja Cement owns a 47.92% stake in ACC. Holderind Investments, Holcim’s investment arm, holds a 35.6% in Ambuja Cements. Unnamed sources put the timescale of the merger at between 6 and 8 months.
ACC has installed capacity of ~30 million t and Ambuja Cements has capacity of ~25 million t. Together with UltraTech, the cement business of the Aditya Birla Group, they compete for the leading position in the Indian market. A merger between the two Holcim companies, accompanied by further expansion and acquisition activity on the part of Holcim, would certainly cement the group’s position in the country.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/04022011/holcim_denies_merger_plans/