The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved the proposal for M/s. Ambuja Cements Limited for acquisition of 24% shares in its holding company-Holcim (India) Private Limited from M/s. Holderind Investment Limited and subsequent reverse merger through a share swap. This would entail outflow of ₹ 3500 crore.

These transactions would enable Lafarge Holcim group to create a linear corporate structure (with Ambuja and ACC becoming parent and subsidiary) with a view to harvest significant synergies from India operations. This will further strengthen all India footprints, debt free balance sheet and cash flow generation, bringing in huge prospects for further expansion and creation of employment opportunities.

Acquisition enables reverse merger and share swap, restructuring corporate ownership and enabling operational synergies and expansion. Approval was granted for an acquisition of a minority equity stake in a holding company followed by a reverse merger implemented through a share swap, creating a linear parent-subsidiary structure to consolidate ownership, realise operational and financial synergies, strengthen the consolidated balance sheet and cash flow profile, and facilitate further expansion and employment generation.