Aditya Birla Nuvo, Grasim to merge, creating ₹60000-crore behemoth

Posted on:13 Aug 2016 09:37:34
Aditya Birla Nuvo, Grasim to merge, creating ₹60000-crore behemoth
13 August 2016 Current Affairs: The Aditya Birla Group has announced a plan to merge Aditya Birla Nuvo Ltd (ABNL) with Grasim Industries to create an entity with combined revenue of Rs. 60,000 crore. 

Under this plan, the financial services business will be demerged into a newly formed company — Aditya Birla Financial Services Ltd (ABFSL), which will be listed separately. The transaction will be completed by the end of the current fiscal, but the financial services arm will be listed next year.

The deal will be done in two steps. First, ABNL will be merged into Grasim, that will be followed by the demerger of the financial services business. The merger will also consolidate the cross-holding within the group as both companies own stakes in Idea Cellular, Aditya Birla Fashion and Retail and Hindalco Industries. 

However, Grasim has a cash surplus of rs. 500 crore, while Aditya Birla Nuvo has net debt of ₹2,500 crore. So, the restructured Grasim will have net debt of ₹2,000 crore after the merger.

Monthly Current Affairs

Current Affairs Section

Daily Current Affairs Quiz

Subscribe to Current Affairs

Enter your email to get daily current affairs

Current Affairs September 2017

22 SEPTEMBER
NEWS
21 SEPTEMBER
NEWS
20 SEPTEMBER
NEWS
19 SEPTEMBER
NEWS

Current Affairs August 2017

31 AUGUST
NEWS
30 AUGUST
NEWS
29 AUGUST
NEWS
28 AUGUST
NEWS

Current Affairs July 2017

31 JULY
NEWS
29 JULY
NEWS
28 JULY
NEWS
27 JULY
NEWS