New Delhi : Swiss building materials major Holcim on Wednesday got FIPB nod to merge holding firm Holcim India with its unit Ambuja Cements as part of the plan to restructure its India operations.
Holcim, which has majority stakes in two leading Indian cement makers – ACC and Ambuja Cements – had announced plan in July to consolidate operations in a cash and share deal in a two-step process, valued at about Rs 14,500 cr. However, they said, since Holcim’s proposal is of more than Rs 1,200 crore, it would require approval of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Manamohan Singh.
Holcim had said that as part of the rejig process, Holcim India’s over 50 per cent stake in ACC will go to Ambuja. Holcim’s stake in Ambuja will rise to 61.39 per cent, from a little over 50 per cent after merger of Holcim India with Ambuja.
Ambuja Cements would merge Holcim India through cash and share transactions. Ambuja will first acquire a 24% stake in HIPL for Rs 3,500 cr.