Shareholders of Grasim give nod for merger with ABNL

Grasim Industries informed bourses today that shareholders of the Company have approved the plan of merger between Grasim and Aditya Birla Nuvo.

Out of total votes cast more than 93 percent were in favour of the plan to merge with affiliate Aditya Birla Nuvo. Further, ABNL's investors are scheduled to vote on the same deal by April 9.

The restructure, which also involves the spin-off of a financial services unit, would help the Birla family increase its influence over the group. The deal would increase the Birla family’s holding in post-merger Grasim to 39 percent from 31 percent. This would tighten Kumar Mangalam Birla’s hold on a business empire with more than $40 billion in annual revenue.

Kumar Mangalam Birla, billionaire and Supremo of Grasim Industries, is of the opinion that the deal would facilitate access to more resources for funding expansion in the world’s fastest growing major economy, which he expressed while talking to a leading news agency. 

Additionally, another unit of Birla i.e. Idea Cellular is in the process of merging with Vodafone Group Plc’s Indian business to form the nation’s largest wireless carrier.