TATA Chemical - TATA Global : Merger News

TATA Chemical share holders have a reason to smile. TATA Chemicals has got the official clearance to demerge it consumer business and merge it with TATA Global Beverages ltd which would ultimately be renamed as TATA Consumer Products Ltd. 

If you hold 100 shares of TATA Chemicals, you are entitled to get 114 shares of TATA Global being allotted freely while holding the original shares of TATA Chemicals. 

The combination of the two consumer focused businesses will benefit both share holders: TATA Global would be benefit from the fast growing FMCG Business and Tata Chemicals will retain ownership of science led chemistry solutions and specialty chemicals.

TATA Global's market cap could expand by Rs.5800 Crores and the expanded equity base under current foreign investment rules can result in the fast track inclusion of TATA Consumer Products in the MSCI India Index. This could be The Best News for these share holders.