What could be the synergies of the L&T Infotech and Mindtree merger?
Answer
Answer
L&T, the holding company of Larsen & Toubro Infotech and Mindtree, is look at the possibility of greater synergies through a $22 billion merger of these two companies. This will give the combined entity the much needed scale to compete with the larger players in the IT industry and bid for sizable orders from the global digital marketplace.
As of now, the swap ratio for the merger of LTI and Mindtree is likely to be finalized as early as next week. However, L&T, LTI or Mindtree top brass were not willing to confirm the merger on the record. L&T holds 61% in Mindtree and 74% stake in LTI, however, the major synergy would be the limited overlap in the businesses of LTI and Mindtree.