Amarchand bags Grasim demerger and Ultratech merger

Amarchand are acting as the legal advisors to the Aditya Birla group-controlled Grasim Industries in its decision demerge its cement business. Grasim, in its disclosure statement to the BSE, has said that it will transfer its cement business to the unlisted unit, Samruddhi Cement, which will eventually merge with Ultratech Cement, creating one of the largest cement manufacturers in the country. The demerger and eventual merger will help the Birla Group raise sufficient capital in the next few years for its proposed Rs. 14,400 Crore ($3 Billion) capital expenditure. The Birla Group has opted to take the demerger route to avoid the complex taxation issues that would arise from a direct sale of assets to UltraTech, a wholly owned subsidiary of the group.