Holcim to join ACC and Ambuja Cements

Switzerland-based cement major, Holcim AG is on its way to merge its Indian subsidiaries, Ambuja Cements and ACC. Hewitt Associates has been given the mandate to undertake organisational restructuring of the two companies.

It will take three months to complete the entire relocation of people in the two companies. They are now looking at sorting out the tax and legal complications involved in the merger. Only then can bankers be appointed to arrive at the swap ratio. But mandates will be doled out soon.

Onne van der Weijde, who has replaced AL Kapur as the chief executive officer from May 1, is pushing for the merger.

A top Holcim AG official, however, denied the development.

Holcim owns 35.77 per cent stake in Ambuja Cements. Narotam S Sekhsaria, promoter and chairman of Ambuja Cements, own 0.79 per cent through Radha Madhav Investments Ltd and RKBK Fiscal Services Pvt Ltd, while Ambuja Cement India Pvt Ltd owns 9.88 per cent, taking the total promoter share to 46.40 per cent.