ACC, Ambuja Cements rally over 5% on merger plan

ACC hit a 52-week high of Rs 1,754, up 6%, while Ambuja Cements up 8% to Rs 266 in intra-day trade

Shares of ACC and Ambuja Cements, a part of the world's largest cement producer LafargeHolcim, rallied by more than 5% each on merger plan.

ACC's board of directors at its meeting on Friday, May 5, 2017 decided to commence an evaluation of a potential merger between the company and Ambuja Cements, the company said in a statement.

The step has been taken with view to combine the strengths of both businesses so as to benefit all stakeholders, it added.

No decision to merge has been taken, and the ACC board will decide on a merger based on the recommendation of the special committee and the audit committee.

The merger of two LafargeHolcim group companies (Ambuja owns 50.05% in ACC) is likely to unlock gains across many fronts including geographical presence, operations, profitability, marketing, distribution, and raw material sourcing, among others, for the combined entity, the Business Standard report suggests. CLICK HERE TO READ FULL REPORT

The stock of ACC hit a 52-week high of Rs 1,754, up 6% on BSE in early morning trade. It trading close to its all-time high of Rs 1,775 touched on May 2, 2015.

Ambuja Cements has soared 8% to Rs 266 on BSE in intra-day trade so far. A combined 3.54 million shares changed hands on the counter on BSE and NSE till 9:19 am.