Behemoth in making, ACC-Ambuja to merge

According to certain media reports, parent company LafargeHolcim is mulling the potential merger of two of its two major cement portfolio ACC & Ambuja Cement in India.

LafargeHolcim, one of the biggest cement producers in the world which owns controlling stakes in two of its Indian subsidiary ACC and Ambuja, is planning to merge both the operations into a single unit as it would help them in unlocking synergies and at the same time, help in rationalising cost.

LafargeHolcim holds close to 63 per cent in Ambuja Cement and 50 per cent in ACC. The merger talks have been doing the rounds since 2013 but has not seen light of the day since its parent firm was in a major business rejig.

Lafarge and Holcim combined itself in 2015 and since then, both have worked together to streamline its respective operations all over the globe. In one such move, LafargeHolcim stuck deal to divest assets to Nirma in order to complete the merger process.

Experts are of the view that if the future of the sector is tracked, ACC would be the biggest beneficiary if the merger goes through and would also make ACC-Ambuja a force to reckon with.
Reacting to the news, stocks of both Ambuja and ACC, closed with the gains of 4.65 and 4.21 per cent respectively.