Ambuja Cements shares fall 4%, ACC tumble 2% as merger plan put on hold

While details on material swap are awaited, brand and marketing synergies as well as re-rating of the two stocks will be delayed

It’s no surprise that Ambuja Cements’ share price fell almost four per cent and ACC’s was down about two per cent after the companies announced on Monday evening they were not pursuing the merger announced in May last year.

Investors were keenly looking forward to the merger, given the synergies and cost benefits. Ambuja had bought Holcim’s majority stake in ACC, making ACC its subsidiary. The holding company’s structure has led to Ambuja Cements trading at a huge discount, while none of the synergy benefits that were to happen in 2-3 years are evident, though five years have passed since the