Holcim is reportedly planning to restructure its Indian operations which could see the merger of its two local subsidiaries, ACC and Ambuja Cements.
Citing various sources familiar with the situation, the Economic Times of India reported that the Swiss cement major has called on a global investment bank to evaluate various options on how the two operations could be combined.
Holcim owns a 50.3 per cent stake in both ACC and Ambuja Cements, the second and third-largest cement producer in India, respectively.
One option, according to a source, could be to merge both companies while another could be to create a new company and then issue shares of the new entity to the shareholders of both. Sources say that the initiative is part of a bigger strategy which has been underway for a while to optimise operations through common synergies, cost controls, etc.
However, the sources stressed that the plan is at a preliminary stage and cautioned that there is “no certainty about the shape of the eventual outcome.”