The Swiss building materials firm Holcim received the Foreign Investment Promotion Board (FIPB) approval to amalgamate holding firm Holcim India with its unit Ambuja Cements as part of the plan to streamline its India operations.

Holcim, which has majority stakes in two leading Indian cement makers – ACC and Ambuja Cements – had declared the plan in earlier this year to combine processes in a cash and share deal in a two-step process, valued at about Rs 15,100 crore.

Since Holcim’s plan is of more than Rs 1,300 crore, it would require the Cabinet Committee nod on Economic Affairs (CCEA) headed by Prime Minister Manamohan Singh.

As a part of the rearrange process, Holcim India’s over 50 pc stake in ACC will go to Ambuja.

The Swiss firm’s stake in Ambuja will rise to 61.39 pc, from a little over 50 pc after meld of Holcim India with Ambuja.

Ambuja Cements would merge Holcim India through cash and share dealings.

As part of the union, the Swiss firm will receive 60 crore new equity shares of Ambuja resulting in an increase of its ownership in Ambuja from 50.55 pc to 61.39 pc.

At present, the Swiss major has a controlling stake in both ACC and Ambuja. The foreign form directly owns 40.79 pc stake in Ambuja and another 9.76 pc through Holcim India (HIPL).

Post these transactions, Holcim will have 61.39 pc stake in Ambuja and 0.29 pc stake in ACC directly.