ACC and Ambuja Cements gained at 15:13 IST on BSE after LafargeHolcim announced entering into an agreement with the diversified conglomerate Nirma for the divestment of former's stake in Lafarge India for an enterprise value of about $1.4 billion.
ACC (up 0.42% at Rs 1,620) and Ambuja Cements (up 0.27% at Rs 260.90) edged higher.
Meanwhile, the S&P BSE Sensex was up 196.35 points or 0.71% at 27,823.04.
LafargeHolcim announced yesterday, 11 July 2016, that it has entered into an agreement with Nirma for the divestment of the former's interest in Lafarge India for an enterprise value of about $1.4 billion, subject to approval by the Competition Commission of India (CCI). The proceeds from the divestment will be used to reduce LafargeHolcim's debt. LafargeHolcim has a divestment target of CHF 3.5 billion in 2016.
LafargeHolcim will continue to operate in India through its subsidiaries ACC and Ambuja Cements post Nirma's acquisition of LafargeHolcim's stake in Lafarge India. It may be recalled that Switzerland-based Holcim had merged with France's Lafarge in 2015 to form LafargeHolcim. Holcim (India) and Holderind Investments together held 50.34% stake in ACC (as per the shareholding pattern as on 30 June 2016). Holcim (India) and Holderind Investments together held 50.28% stake in Ambuja Cements (as per the shareholding pattern as on 31 March 2016).
Nirma is one of India's diversified conglomerates with businesses across industrial and consumer products ranging from soaps, detergents, salt, soda ash, caustic soda, cement, packaging and other household products.
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