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Ambuja’s proposal to acquire stake in Holcim approved | Canindia News

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Ambuja’s proposal to acquire stake in Holcim approved

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CanIndia New Wire Service 0 comments

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New Delhi, July 20 (IANS) The government on Wednesday approved the proposed acquisition of 24 per cent by Ambuja Cements in its holding company for Rs 3,500 crore.

The Ambuja Cements’ proposal was approved by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi.

The approved proposal entails acquisition of 24 per cent of shares by Ambuja Cements in its holding company Holcim (India) from Holderind Investment and subsequent reverse merger through a share swap.

According to CCEA, the approved proposal will entail an outflow of Rs 3,500 crore.

“These transactions would enable Lafarge Holcim group to create a linear corporate structure (with Ambuja and ACC becoming parent and subsidiary) with a view to harvest significant synergies from India operations,” CCEA said in a statement.

“This will further strengthen all India footprints, debt free balance sheet and cash flow generation, bringing in huge prospects for further expansion and creation of employment opportunities.”

–IANS

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