ACC and Ambuja Cement, both owned by Swiss-based LafargeHolcim, are evaluating a potential merger the companies, reports India's Economic Times.
"No decision to merge has been taken and our board will decide on a merger upon receiving recommendation from the special committee and the audit committee,” the companies said.
The combined capacity of ACC and Ambuja, at 63m tonnes annually, will help LafargeHolcim inch closer to rival UltraTech Cement's 70 million tonne ouitput.
ACC has cement capacity of 33.5m tonnes, which it plans to expand to 35m tonnes n the current calendar year. It is a pan-India player with close to 10m tonne capacity in the southern region, close to 6.2m tonnes in the eastern region, about 6m tonnes in the northern region, about 4.5m tonnes in the central region and close to 4m tonnes capacity in the western region.
Ambuja’s capacity of close to 29.6m tonnes will rise to 34m tonnes by 2018. The company has a presence in all regions except the south.
