Aditya Birla Group's talks with Grasim Industries intensify over probable merger

Following the talks to merge Idea Cellular and Vodafone Group, Kumar Mangalam-led, Aditya Birla Group is furthering its merger talks with Grasim Industries as Grasim's shareholders are about to begin voting on the proposed merger from March 6, 2017.

According to a notice by Grasim, voting on the subsequent merger will remain open till April 5, 2017. The merger is likely to take place for chemicals, viscose, textile fibres and the financial services business segments as announced by the Aditya Birla Group in August 2016.

The merger is supposed to raise the promoters' stake in the company from 31.28 per cent to 40.1 per cent in the post-merger Grasim.

With the merger, Grasim will become the lone holding company for the Aditya Birla Group, while Grasim will own 57.3 per cent shares in ABFSL (Aditya Birla Nuvo Financial Services Limited), likely to reign supreme in the payments bank and life insurance business along with several other financial services.

Grasim Industries has proposed a 25.6 per cent public shareholding in ABFSL; while 17.1 per cent is likely to remain with the promoter group.