Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: due date for vat payment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: list of goods taxed at 4% :: cpt :: VAT RATES :: form 3cd :: TDS :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS
 
 
Mergers and Acquisitions »
  IBBI pitches for market driven mechanism for mergers, acquisitions
 Air India disinvestment: Govt invites applications from investment bankers, law firms
 Govt seeks advisers for Air India disinvestment
 India Inc's M&A value dips 46 percent in August: Grant Thornton
 Deals of the day-Mergers and acquisitions Sep 12, 2017,
 Deals of the day-Mergers and acquisitions Sep 5, 2017
 Nationalised Banks Exempted From CCI Approval For Mergers
 Deals of the day- Mergers and acquisitions Aug 29, 2017,
  NCLT process will cleanse the system; another Swachh India in the making
 Understanding Mergers & Acquisitions in India
 Acme, Inox explore exit from renewable energy projects won at record low tariffs

ACC, Ambuja Cements evaluating merger
May, 10th 2017

ACC and Ambuja Cements say a special committee of directors, comprising largely of independent directors, has been constituted to evaluate the merger

Cement makers ACC Ltd and Ambuja Cements Ltd, both part of the LafargeHolcim Group, on Friday said their boards had agreed to start evaluating a potential merger between the two “with a view to combine the strengths of both businesses”.

A special committee, comprising largely of independent directors, has been constituted to begin the evaluation, ACC and Ambuja Cements said in separate notes.

Both ACC and Ambuja are part of conglomerate LafargeHolcim and a merger between the two has been long speculated about. Ambuja Cement holds about a 50% stake in ACC and while LafargeHolcim holds a 4.48% stake through unit Holderind Investments Ltd, according to data from Bloomberg. Holderind holds about 63.11% in Ambuja Cement.

If the merger materializes, it will be the latest in a string of large mergers and acquisitions (M&As) in the Indian cement sector, which has in the past year seen Jaypee Group agree to sell its cement assets to larger rival UltraTech Cement Ltd, and a merger between Dalmia Bharat Ltd and OCL India Ltd.

In January, JSW Cement Ltd said it would buy the entire promoter holding in Shiva Cement Ltd.

Last year, Reliance Infrastructure Ltd agreed to sell its cement assets to Birla Corp. Ltd for Rs4,800 crore in order to reduce debt.

A potential merger between ACC and Ambuja has long been expected, according to Nitin Bhasin, head of research at Ambit Capital Pvt. Ltd.

“A merger of ACC and Ambuja can help LafargeHolcim streamline its presence in India and achieve some operational benefits or savings,” Bhasin said.

ACC said in its statement that its board will decide on a merger only after receiving recommendation from the special committee and the audit committee.

ACC, with a capacity of 30.7 million tonnes (mt), has about 7,800 employees and runs 17 cement manufacturing sites and 50 concrete plants in India. Ambuja Cements has a capacity of 29.65 mt with five integrated cement manufacturing plants and eight cement grinding units across the country.

ACC, Ambuja, UltraTech Cement Ltd and Dalmia Cement Ltd command about 40% of India’s total cement market, which is estimated to have a capacity of more than 420 mt.

ACC is the second largest cement company in India, with about 10% market share.

For the year ended December 2016, Ambuja Cements reported a consolidated revenue of Rs20,093.95 crore, while ACC reported consolidated revenue of Rs11,167.55 crore.

Ambuja Cement, the third largest cement maker in India, has added only 1.7 mt capacity in the past three years, resulting in its market share declining from 8.5% in 2013 to 7.4% in 2016, according to a 2 May report by JM Financial.

The company, however, is one of the most profitable cement makers, with the lowest cost of production, the report said.

France’s Lafarge and Holcim of Switzerland merged in July 2015 to form the world’s largest cement firm, LafargeHolcim.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions