Tata Global Beverages and Tata Chemicals are the top two gainers on the BSE currently. Tata Global rose over 10.5% to Rs.219.85 and Tata Chemicals rose 8.5% to Rs.604.
The market has given the arrangement between the two companies a big thumbs up. Tata Global Beverages is acquiring all the branded food businesses from Tata Chemicals in an all-stock transaction.
As per this deal, shareholders of Tata Chemicals will get 1.14 new shares of Tata Global for every share held.
This is being done as per the strategy of Tata Sons chairman, N.Chandrasekaran’s strategy to simplify the Tata group structuring.
The new business created by the merger of the consumer businesses will be known as Tata Consumer Products Ltd.