The Economic Times daily newspaper is available online now.

    Tata Chemicals & Tata Global Beverages to merge consumer businesses

    Synopsis

    Tata Global Beverages to be renamed Tata Consumer Products, the group announced.

    ETMarkets.com
    Tata group on Wednesday decided to demerge consumer business of Tata Chemicals (TCL) and merge it with Tata Global Beverages (TGBL). TGBL will be renamed as Tata Consumer Products, the group announced.

    Under the scheme, every shareholder of TCL will get 1.14 new equity shares of TGBL for every one equity share held in TCL. It means that shareholders having 100 shares in TCL will receive 114 shares in TGBL.

    The new merged entity will have key brands such as Tata Salt, Tata Tea, Tata Sampann and Tetley under a single umbrella.

    The transaction is expected to be completed by June next year.

    “The combination of the two consumer-food businesses will benefit both sets of shareholders who will be able to participate in a larger business poised to growth their share of the food & beverages market with a broader exposure to the attractive and fast growing FMCG sector,” the company said in a release.

    The proposed transaction will create a focused consumer products company with a combined turnover and Ebitda of Rs 9,099 crore and Rs 1,154 crore, respectively, for the 12 months period ended March 31.

    TCL shareholders will retain their ownership of a focused science-led chemistry solutions and specialty products company.

    Commenting on the announcement, N Chandrasekaran, Chairman of Tata Sons said: "Tata Consumer Products consolidates our current presence in food & beverages in the fast-growing consumer sector. Through this combination, we have created a strong growth platform to meet the growing aspirations of lndian consumers.”

    This is part of the strategy initiated by Tata Group Chairman N Chandrasekaran to reduce overlap between group companies and consolidate businesses sharing similar synergies and adjacencies within the conglomerate, ET had reported earlier.

    The transaction is subject to the necessary statutory and regulatory approvals including approvals of the respective benches of NCLT, the stock exchanges, Sebi and the respective shareholders and creditors of each of the companies.



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in