Ambuja Cements board approves merger of ACC and Orient Cement

New Delhi, Dec 22 (PTI) The board of Adani group firm Ambuja Cements on Monday approved the amalgamation of subsidiaries ACC Ltd and Orient Cement with the company to create a pan-India cement powerhouse.

The merger will unlock greater operational efficiencies, optimise manufacturing and logistics, and enable efficient capital deployment, Ambuja Cements said in a statement.

"These improvements will boost profitability, support capacity expansion, and enhance long-term shareholder returns," said Ambuja Cement.

The merger will simplify and rationalise the network, branding and sales promotion-related spends. This will help optimise costs and improve margin by at least Rs 100 per metric tonne.

The amalgamation also eliminates "structural duplication, reduces administrative costs, and enables faster, more agile decision-making.

"In addition, there will be no specific MSA required with ACC, Orient, Penna & Sanghi as these subsidiaries will become an integral part of Ambuja Cements," it said.

As per the scheme for every 100 equity shares of ACC with a face value of Rs 10/- each, Ambuja will issue 328 equity shares with a face value of Rs. 2/- each, to eligible shareholders of ACC.

While for every 100 equity shares of Orient Cement with a face value of Re. 1/- each, Ambuja Cements will issue 33 equity shares with a face value of Rs. 2/- each, to eligible shareholders of Orient Cement. PTI KRH KRH MR