Street Talk: Ambuja Cements, ACC shine on possibility of merger
DSIJ Intelligence / 08 May 2017
The major players in the cement space are surging on Monday morning on the possibility of merger of Ambuja and ACC . The respective boards of ACC and Ambuja Cements have agreed to start the evaluation of a potential merger between the two companies.
The major players in the cement space are surging on Monday morning on the possibility of merger of Ambuja and ACC . The respective boards of ACC and Ambuja Cements have agreed to start the evaluation of a potential merger between the two companies.
Share price of Ambuja Cement had clocked a straight 6.78 per cent gain during the early trade and is trading at Rs 263 in an intraday basis at 1100 hours. At the same time, stock price of ACC also rose 5.84 per cent and is trading at Rs 1733 in an intraday basis.
ACC and Ambuja Cements are both a part of conglomerate LafargeHolcim Group. Duo companies clarified that no decision has been yet taken to merge the two entities and their boards will decide on a merger upon receiving a recommendation from the special committee and the audit committee.
If merger happens then it will be the latest of the large mergers and acquisitions (M&As) in the Indian cement sector.
ACC, Ambuja Cement, UltraTech Cement and Dalmia Cement have market share of about 40 per cent of India’s total cement market which is estimated to have a capacity of more than 420 million tonnes.