Mysore cement to merge group companies with itself

Heideberg the german cement major has announced the merger of its two companies into mysore cement. The merged companies are Indorama cement and Heidelerg india. Both these companies are unlisted.
The shareholders of Indorama Cement will receive 1.3544 equity shares of Mysore Cements for each equity share of Indorama, while the parent will receive 0.1469 shares of Mysore Cements for every share of HeidelbergCement India.
The purpose is to increase synergies and reduce costs which would in turn help in increasing the EPS. There are also plans to increase the capacity to around 12 mt from the consolidated total of around 3 mt now.
The merger would make it easy to undergo expansion as mysore cement is currently sitting on a cash of Rs 250 crore and the proposed expansion needs around 800 to 900 crores. The merger would help leverage resouces. The merged entity will have a turnover of Rs 1200 crore and EBITDA of Rs 150 crore.
Indorama Cement's plant is located in Raigad district of Maharashtra, while Mysore Cement's plants are situated in Madhya Pradesh, Uttar Pradesh and Karnataka, providing Heidelberg with access to markets in central, north and south India.
I had earlier recommended mysore cement for long term and based on its results which i have posted here it looked quite attractive. With great plans around the corner the stock should see good movement on monday.