ACC to delist GDRs from LSE

MUMBAI: ACC, the country���s largest cement maker, has proposed to delist its global depository shares from the London Stock Exchange. The GDRs have a combined stake of 0.7% in ACC.

In a statement to BSE, the company said it has directed the depository ��� Citibank, New York ��� to terminate the deposit agreement with effect from October 15. The company said the proposed delisting of GDRs will take place after terminating the deposit agreement by giving 30 days��� notice to GDR holders. An ACC official said the listing was not serving the company���s purpose. He did not elaborate.

Meanwhile, a Reuters report from Zurich said shares of Holcim and Lafarge rose strongly on Tuesday as speculation swirled that the world���s two largest cement makers could merge. Share prices of Holcim have risen 6.2% to 89.50 Swiss francs while Lafarge shares had gained 5% to E84.65.

In addition to ACC, Holcim holds controlling stake in Ambuja Cements. If the merger goes through, the Holcim-Lafarge combine will be the largest cement player, overtaking the Aditya Birla group. Analysts doubted the likelihood of a deal. ���This does not make much sense in the cement industry. A merger between two big groups would not benefit either of them. There would be many countries where competition authorities would block the deal,��� analysts at Oddo Securities said.

Traders in Switzerland were quoted in the foreign media that there was also talk that a large foreign investor, possibly a Russian, may be building up a stake in Holcim, which is the world���s second-largest cement maker after Lafarge.

One trader said the falling oil price was behind the rise in Holcim���s shares.

���You really don���t have to look too far for the reasons. The shares are seeing a correction as the group has suffered from the strong rise in energy and transport costs. Now, things have eased since the oil price has fallen to $90 per barrel,��� he said.