At 09:27 am, TGBL was trading 1 per cent higher at Rs 201, after rising 4.5 per cent to Rs 208 in early morning deal on the NSE.
The Tata Group will bring its consumer businesses under one unit as the salt-to-software conglomerate continues restructuring to streamline its operations. TCL will demerge its food business to TGBL. Shareholders will get 114 shares of Tata Global for every 100 held in Tata Chemicals.
The boards of directors of TGBL and TCL, at their respective meetings Wednesday, approved the de-merger of the consumer products business of TCL into TGBL, the company said in a statement.
TGBL will buy the business of selling edible salt, spices, and lentils and give shares in return to TCL. TGBL will rename itself after the deal as Tata Consumer Products.
"The combination of the two consumer-focused businesses will benefit both sets of shareholders who will be able to participate in a larger business poised to grow their share of the foods and beverages market with a broader exposure to the attractive and fast growing FMCG sector," the statement said.
TGBL sells tea under Tetley and Tata Tea brands as also coffee under Eight O'Clock brand and bottled water. TCL, the world's third-largest producer of soda ash, will focus on its core chemicals business after this deal.