Tata Global Beverages, Tata Chemicals zoom up to 11% on biz merger announcement

Shares of Tata Chemicals and Tata Global Beverages zoomed up to 11 per cent Thursday, a day after the Tata Group announced the merger of consumer business involving the two firms. With an intent to put in place a consolidated platform for its consumer business and become a leader in the FMCG segment, the Tata Group Wednesday announced the transfer of the branded food business from Tata Chemicals to Tata Global Beverages in an all-share deal that will create an over Rs 9,000-crore giant.

The scrip of Tata Chemicals climbed 8.29 per cent to close at Rs 603.60 on the BSE. During the day, it advanced 8.89 per cent to Rs 607.

On the NSE, shares jumped 8.37 per cent to close at Rs 603.45.

Shares of Tata Global Beverages zoomed 10.99 per cent to close at Rs 220.60 on the BSE.

On the NSE, it rose sharply by 11.11 per cent to close at Rs 221.40.

Under the agreement, Tata Global Beverages will buy the business of selling edible salt, spices, and lentils and give shares in return to Tata Chemicals.

Tata Global Beverages will rename itself as Tata Consumer Products after the deal.

A statement issued by the group said the combination of the two consumer-focused businesses will benefit both sets of shareholders who will be able to participate in a larger business poised to grow their share of the foods and beverages market with a broader exposure to the attractive and fast growing FMCG sector.

Source:-https://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-supplies-liquor/tata-global-beverages-tata-chemicals-zoom-up-to-11-on-biz-merger-announcement/69359936