ACC and Ambuja Cements declined by 1.35% and 0.38% respectively at 13:20 IST on BSE after the government deferred approval sought by Ambuja Cements for the acquisition of 24% shares in its holding company, Holcim (India).
Meanwhile, the S&P BSE Sensex was up 54.38 points or 0.22% at 24,928.06.
The approval was sought by Ambuja Cements for the acquisition of 24% shares in its holding company Holcim (India) from the latter's holding company, Holderind Investments and subsequent reverse merger through a share swap.
The proposed change in structure of holding of ACC and Ambuja under the Holcim Group was pending approval of the Foreign Investment Promotion Board (FIPB). Holcim India is a holding company of ACC and Ambuja Cements. Such a change In structure was a fall out of Lafarge SA and Holcim Group wanting to restructure their businesses in India post their global merger in 2014 to form a merged entity, LafargeHolcim. The complexity is involved in integrating their large firms in India, Holcim's ACC and Ambuja Cements with Lafarge India. As per reports, Lafarge SA has decided to sell all its assets in India.
As per the shareholding pattern, Holcim (India) holds 9.71% stake and Holderind Investments holds 40.57% stake in Ambuja Cements as at 30 September 2015. While, Holcim (India) holds 50.01% stake and Holderind Investments holds 0.29% stake in ACC as at 30 September 2015.
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