Untitled Document
Excon, Excon 2011 Biggest Construction Equipment Trade fair India.
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www.epcworld.in
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Cement |
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| 6/25/2009 2:31:00 PM |
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Mumbai, June (EPC News): The Aditya Birla group, the country’s second largest cement maker, is looking at consolidating its cement business — currently being run by Grasim Industries and UltraTech Cement — following the exit of Larsen & Toubro (L&T) from UltraTech. |
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L&T sold its 11.5% stake in UltraTech to a handful of financial investors a few weeks ago, paving the way for a formal merger of UltraTech with Grasim. Its two representatives — CFO YM Deosthalee and whole-time director JP Nayak— have stepped down from the UltraTech board.
An investment banker close to the development said the group, for all practical purposes, has been managing its cement business as a single entity, but had not merged the two companies due to L&T’s presence in UltraTech. “Following L&T’s exit, the Birlas are putting the consolidation initiative on the fast track.
They will shortly bring the two companies under one roof,” said the banker. Since Grasim is the parent company of UltraTech Cement and owns the UltraTech brand, there is no hurdle to the merger except for the substantial stamp duty that the group needs to pay in case of an amalgamation. |
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