Ambuja Cements gains nearly 5% on merger buzz with ACC

NEW DELHI: Shares of Ambuja Cements climbed nearly 5 per cent after media reports said Lafarg-Holcim is considering merger of ACC and Ambuja Cements.

Reacting to the news, shares of ACC climbed as much as 5.15 per cent during the day. The scrip settled at Rs 1,480.35, or 53.90 points or 3.78 per cent
higher.

Shares of the cement manufacturer opened in the red after it reported a 45 per cent fall in consolidated net profit for the fourth quarter ended December 31, 2016 at Rs 56 crore on the back of a drop in revenues.

ACC, which follows January-December as fiscal year, had reported a net profit of Rs 102 crore for the corresponding quarter last fiscal. The company announced its financial results on Friday post market hours.

Its net sales for the quarter stood at Rs 2,672 crore against Rs 2,846 crore reported for Q4 of 2016, registering a decline of 6.11 per cent.

For the year, ACC posted a net profit of Rs 604 crore and revenues of Rs 10,946 crore against Rs 588 crore and Rs 11,433 crore in 2015, respectively.

Ambuja Cement ended at Rs 239.95, higher by 10.70 or 4.67 per cent.

The BSE has also sought a clarification from Ambuja Cements and ACC, with reference to news "LafargeHolcim mulling merger of ACC & Ambuja”.