ACC Ltd and Ambuja Cements, the two Indian units of LafargeHolcim, today said they are not proceeding with the merger at this juncture.
"On the basis of a comprehensive evaluation carried out by both the special committee and Board of Directors of the company, the board is of the opinion that there are at present certain constraints in implementing a merger between the company and Ambuja Cements Ltd (ACL)," ACC said in a filing to BSE.
The company is therefore not proceeding with the merger at this juncture, though this remains the ultimate objective, it added.
In a filing to the bourses, Ambuja Cements also said it was not pursuing a merger with ACC at this point of time, though it remains the ultimate goal.
"In the meantime, with intention to maximise synergies between the companies and to unlock value for the shareholders, the board has approved an arrangement with ACL for mutual purchase and sale of materials and services," ACC said.
Both ACC and Ambuja Cements became parts the Holcim group in 2005. Following the merger of Holcim Limited with Lafarge SA in 2015, a new entity LafargeHolcim was created to become the world's largest cement producer.
Following the merger of the global majors, there has been periodic speculations that ACC and Ambuja Cement would become a single entity.
Shares of ACC Ltd closed today at Rs 1,663.30, up 1 per cent on BSE. Ambuja Cements also closed at Rs 262.30 on BSE, up 1 per cent from its previous close.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)