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NCLT approves Adani Cementation, Ambuja Cements merger

The National Company Law Tribunal (NCLT) has approved the merger of Adani Cementation with Ambuja Cements, which will help to consolidate Adani Group's cement business under one unit and bring synergistic benefits, according to a BSE filing.

"The scheme of amalgamation annexed as Annexure I to the company petition is hereby sanctioned, and it is declared that the same shall be binding on the petitioner companies and their shareholders and creditors and all concerned under the scheme," said the two-member NCLT bench.

"The appointed date of the scheme is April 1, 2024. It will be effective upon completion of the steps, as laid out in the Scheme. We will update the exchanges once the Scheme becomes effective," said the filing.

The intergroup merger is based on share swapping, and Adani Enterprises will get 8.7 million shares of Ambuja Cements.

The NCLT has directed Ambuja Cements, a listed entity, to "comply with all applicable regulations, circulars and directions" issued by market regulator Sebi, and bourses BSE, NSE and Luxembourg Stock Exchange.

"All the property rights and powers of the undertaking of the transferor company (Adani Cementation) and all the other property rights and powers of the transferor company be transferred without any further act or deed to the transferee company (Ambuja Cements)," the NCLT order said.