L&T is entering into merger talks with Sembcorp India for its thermal energy business.
- ByManjeet Singh | September 29, 2021
According to people with knowledge of the matter, Larsen & Toubro Ltd. is in talks to merge its Indian thermal power unit with Singapore-based Sembcorp Industries Ltd. The share swap will help India’s largest engineering conglomerate reduce its debt
The deal is expected to help India’s largest engineering conglomerate pare debt, the people said, asking not to be identified since negotiations are confidential. One of the sources said the combined business could be valued at around $4.5 billion including debt.
According to the sources, L&T is considering moving up to *10,000 crores ($1.3 billion) of debt to the merged entity. After the deal, it may eventually attempt to list the power business separately.
Currently, details regarding the potential transaction may change or talks may break down as nothing about the talks is out in open officially.
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