Larsen & Toubro Limited on Tuesday said its board has approved the amalgamation of the company's wholly-owned arm L&T Hydrocarbon Engineering Ltd with the parent firm.

 

“The board of directors of Larsen & Toubro Ltd. has considered and approved a scheme of arrangement for amalgamation of L&T Hydrocarbon Engineering Ltd (LTHE) a wholly-owned subsidiary of the company) with the company,” the company said in a filing to stock exchange.

 

The merger plan is subject to necessary statutory and regulatory approvals including the approvals of the National Company Law Tribunal/other regulatory authority and the respective shareholders and lenders/creditors of each of the companies involved in the scheme, it added.

 

LTHE is engaged in the ‘design to build’ engineering, procurement and construction solutions on turnkey basis in oil & gas, petroleum refining, chemicals & petrochemicals, fertilizer sectors and cross-country pipelines. In addition to its services of providing delivery of complete end to end solutions including front end design through engineering, procurement, fabrication, project management, construction and installation up to commissioning services, it also provides basic and detailed engineering design, documentation and environmental impact assessment.

 

“The Transferor Company and the Transferee Company are operating in complementary/similar lines of business that can be conveniently combined for creation of a much stronger energy portfolio. The Amalgamation will bring in synergy in operations and improve organizational capability arising from pooling of human capital with diverse skills and talent. The proposed amalgamation will also enhance the financial capability to bid for larger projects and improve the cost competitiveness,” company said.