In a lucrative cement sector which is seeing a positive growth year after year, majors ACC and Ambuja Cements are looking for a merger. If it goes through, the combined entity would be worth Rs.80,000 crores. The Ultra tech cement of Aditya Birla Group leads the fray which has the market capitalisation of Rs.1.14 Lakh crores.
The Board of Directors of both the company have started evaluating the possibilities of the merger between the two entities to give a combined strength of both business. ACC and Ambuja are both a part of conglomerate LafargeHolcim Group.
ACC has 7800 employees and has 17 cement manufacturing plants and 50 concrete plants. ACC, Ultratech, Ambuja and Dalmia commands over 40% of cement market in India and have a combined total production capacity of 420 million tonnes. If the merger goes through, this will be the largest merger in the recent days which saw the mergers earlier with Dalmia Bharat Ltd and OCL India Ltd, JSW Cement Ltd taking over Shiva Cemet Ltd, Ultratech Ltd taking over the cement business from Jaypee Group.
No decision to merge has been taken and our board will decide on a merger upon receiving a recommendation from the special committee and the audit committee,” the ACC statement on Friday said.