Larsen & Toubro Ltd is planning a merger between two of its publicly traded software companies. After the merger, the size of the company will be $ 22 billion, which can give a tough competition to the digital giants globally. According to reports, the company may consider the share swap ratio for the merger early next week.
Two sources with knowledge of the matter have said that the boards of Mindtree Ltd and Larsen & Toubro Infotech Ltd, the two software units controlled by the Mumbai-based engineering firm, may consider a share swap ratio for merger early next week. .
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L&T holds 61% stake in Mindtree
Let us inform that L&T currently holds about 61% stake in Mindtree and about 74% in L&T Infotech. One of the people said that the two companies have minimal overlap in businesses or customers. According to sources, discussions are currently on regarding this merger and the plan may or may not be delayed. Mindtree and L&T Infotech are scheduled to report earnings on Monday and Tuesday, respectively.
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The news of the merger comes at a time when software companies are seeing a growing demand for businesses adopting the digitization that accelerated during the COVID-19 pandemic. Large IT outsourcing firms are also expanding into sectors such as cyber security, automation and machine-learning support.