In a development that marks months of speculation on the matter, ACC Ltd. said on Friday it was evaluating its possible merger with Ambuja Cements.
In a statement issued by the company, ACC said its board had decided to start an evaluation of a potential merger with Ambuja Cements. If successful the move would create the second largest cement company in the country after UltraTech.
“A special committee of directors, of which majority are independent directors, has been constituted to commence the evaluation. No decision to merge has been taken and our board will decide on a merger upon receiving recommendation from the special committee and the audit committee,” the company said in a regulatory filing.
There have been numerous reports in the media suggesting that LafargeHolcim, the parent company of both ACC and Ambuja, is mulling a merger of the two cement majors.
A meeting was held on Friday to evaluate the benefits of the merger. A special committee of directors, of which majority are independent directors, has been constituted to commence the evaluation, the company said.