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The board of directors of ACC has shelved plans to merge the company with holding company Ambuja Cement.
Switzerland-based cement major LafargeHolcim owns a majority stake in ACC through Ambuja Cement and had proposed to consolidate its holding in the two companies by merging both the listed companies.
Referring to a proposal last May on formation of a special committee to consider a merger, ACC, in a statement on Monday, said that on the basis of a comprehensive evaluation by special committees, the Boards of both companies are of the opinion that there are certain constraints in implementing the merger between ACC and Ambuja Cement.
So, ACC has decided not to proceed with the merger as of now, though it will remain the ultimate objective, the company said in the statement.
Meanwhile, to maximise operational efficiency, the board has decided to approve an arrangement whereby Ambuja Cement will decide on mutual purchase and sale of material and services, it said.
The operational part of the arrangement for mutual purchase and sale of material will be announced soon, it added.
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