Schaeffler India to merge two subsidiaries to increase cost and production efficiencies

Schaeffler India, an automotive component manufacturer with its headquarters in Germany, has announced the merger of INA Bearings and LuK India, its two arms, in order to improve cost and supply side efficiencies. The combined entity expects to grow 10% post-amalgamation. 
 
Under the merger scheme, Schaeffler India will issue 10 equity shares each to every 65 shares of INA India and 35 shares of LuK India. The merger will be completed in the third quarter of 2018, subject to all approvals. Schaeffler India will issue 14.64 million new equity shares, thereby increasing its outstanding equity shares to 31.26 million and increase its holdings to 74.13% from the present 51.33%.