ACC and Ambuja Cements have denied reports of a potential merger, according to announcements to the Bombay Stock Exchange. Local news channel CNBC-TV18 had been reporting that LafargeHolcim, the parent company of both cement producers was considering a merger.
In response to the news report, ACC said in a statement that, “at present there is no proposal of a merger being considered by the company. Hence the question of negotiation does not arise.”
Similarly, Ambuja Cements announced that is had “no information about any negotiation taking place”. Meanwhile, LafargeHolcim said it did not wish to comment on speculation.
LafargeHolcim owns 63% of Ambuja Cements, which in turn owns a 50.05% stake in ACC. The company increased its stake in both companies last year, saying that India was a “key market with very solid long term fundamentals and a clear potential for further improvement in business performance.”
According to Rakesh Arora, an independent analyst, the merger could make good sense, however, in terms of synergies of cost branding, logistics, distribution and tax savings. Having two or three companies in India didn’t make sense for LafargeHolcim, Arora told CNBC-TV18.
Read the article online at: https://www.worldcement.com/indian-subcontinent/06022017/acc-and-ambuja-deny-merger-rumours/