As per Sebi's regulations, the proposed deal as such need approval from majority of public shareholders in the two listed companies, ACC and Ambuja Cements, as the transaction involves their promoters.
     
Besides, the deal also needs to be scrutinized by the stock exchanges and Securities and Exchange Board of India (Sebi) before its culmination. However, Sebi has begun an early scrutiny as a number of complaints have been received from various entities including some investor associations and institutional investors, sources said.
     
Ambuja shares have fallen seven percent to Rs 177 level since the deal was announced while ACC has plunged 3.5 percent to Rs 1,190.
     
Holcim, last month, announced that it would merge holding firm Holcim India with Ambuja Cements in a cash and share deal to restructure India operations in a two-step process estimated to be about Rs 14,500 crore.
    
Besides, as part of the process, Holcim India's over 50 per cent stake in ACC will go to Ambuja. Holcim's stake in Ambuja would rise to 61.39 percent, from a little over 50 per cent, after merger of Holcim India with Ambuja.
     
Ambuja Cements would merge Holcim India through cash and share transactions. This would be the first proposed deal after Sebi made new regulations earlier this year under which companies would need to mandatorily seek shareholders approval for any merger and demerger transactions in case shares are issued to promoter entities, parent companies, related parties or any of their subsidiaries or associates.

(Agencies)

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