Buzz about a merger between ACC and Ambuja Cements, both promoted by Holcim, was back on, and the word was that the union would be in favour of Ambuja Cements shareholders. Ambuja has a better cash-to-debt ratio than ACC in December.
Following the market talk, shares of Ambuja Cements soared 7.73 per cent, or Rs 11.70, to Rs 163.10 on BSE, and ACC rose 2.41 per cent, or Rs 26.25, to Rs 1,115.25 on a day when Sensex fell 152.58 points, or 0.73 per cent, to 20,852.38.
A company insider said: “There is a board meeting scheduled for this month, which is going to discuss the company’s budget only.”
“They have been talking about a merger for sometime. The merger decision is expected to come up in the January board meeting. Merger is not a difficult option because Holcim controls the boards of ACC and Ambuja. It only needs a nod from both the boards,” the insider said.
A spokesman at Holcim’s headquarters in Switzerland denied any plan for merger in the immediate future. “These are just rumours,” he said.
Source: Financial Chronicle