InvestorQ : Why did Tata Group decide to merge? How will it affect my shares?
vaishnavi mhatre made post

Why did Tata Group decide to merge? How will it affect my shares?

ishika Banerjee answered.
3 years ago
Tata group is all set to merge with Tata Global Beverages Ltd. This will be a transfer of its entire food business from Tata Chemicals Ltd to Tata Global Beverages Ltd.
Cumulative strength of shares will create a company valuing more than Rs 9,000 crore.

Now coming to your query of share distribution, what are the Impacts on Shareholder?; Shareholders of TCL for every one equity share held, you will get 1.14 new equity shares of TFBL. Ownership will be retained in TCL itself.
Shareholders will have a chance to participate in larger business through shares of the foods and beverages market.

In the merger deal, Tata Global Beverages Ltd (TGBL) will buy Tata Chemicals Ltd (TCL) and in return will give shares. TCL is a company which sells edible salt, spices, and lentils. TCL is the world's third-largest producer of soda ash it will now focus on its core chemicals business.

The Boards of Directors of TGBL and TCL have approved the de-merger of TCL into TGBL. After the merger deal, TGBL will be named as Tata Consumer Products Ltd.

3 years ago

Depends on what shares you hold. Tata Beverages will be happy as their stock value is lower than that of Chemicals; they will have some benefits for sure when the stock allocation will shift.