Holcim-Lafarge plan mega merger of Ambuja, ACC and Lafarge India

The proposed Holcim-Lafarge merger is beginning to play out in India as well. ET NOW learns that a mega restructuring is in the works in India to fully leverage on the combined might of the three domestic subsidiaries - Ambuja, ACC and Lafarge India. Sources with direct knowledge share that Holcim-Lafarge has embarked on a mega restructuring plan in India and is looking at a plan to merge ACC, Ambuja and Lafarge India.

The plan is still at a nascent stage and the global cement giants have mandated boutique investment bank Lazard to advise on the rejig of Indian operations.

The most likely option is the merger of ACC, Ambuja and Lafarge India units into one listed entity to create the largest cement company in India. Combined capacity of the 3 subsidiaries will be 70 million tonnes of cement which means that the company will race ahead of KM Birla’s UltraTech in the domestic market.

As part of the new restructuring proposal, Holcim-Lafarge may re-look at Holcim’s rejig plan announced last year which is yet to get the FIPB approval, a source said. As part of that plan, shareholders of Ambuja had approved ACC’s stake buy from Holcim.

When contacted, Holcim-Lafarge did not offer any comment on ET Now’s query.