Holcim's India operation restructuring plan gets FIPB nod

Byzhangli

Updated 2013-11-15

India: Holcim has received approval from the Foreign Inevestment Promotion Board (FIPB) to merge holding firm Holcim India with its unit Ambuja Cements as part of a plan to restructure its India operations.

Holcim, which has majority stakes in two leading Indian cement makers, ACC and Ambuja Cements, announced in July 2013 its plan to consolidate operations in a cash and share deal in a two-step process, valued at about US$2296m. However, since Holcim's proposal is more than US$190m, it required approval of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Manamohan Singh.

Holcim said that as part of the restructuring process, Holcim India's over 50% stake in ACC will go to Ambuja and Holcim's stake in Ambuja will rise to 61.4% from a little over 50% following the merger of Holcim India with Ambuja.

Ambuja Cements would merge Holcim India through cash and share transactions. Ambuja will first acquire a 24% stake in HIPL for US$554.1m.

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