L&T Infotech and Mindtree Merger: Larsen & Toubro (L&T) recently announced the merger of its two independently listed IT services companies - Larsen & Toubro Infotech (LTI) and Mindtree.

Key Points:

• This merger is in line with L&T's strategy of becoming more service-oriented.
• The combined entity will be known as “LTIMindtree”.
• LTIMindtree will be led by Mindtree CEO Debashis Chatterjee.
• Under the proposed merger, Mindtree and LTI would combine their strengths to form an efficient and scaled-up IT services provider worth more than USD 3.5 billion.
• Upon the merger coming into effect, Larsen & Toubro Infotech (LTI) shares will be issued to all Mindtree shareholders at a ratio of 73 LTI shares for every 100 Mindtree shares.

Benefits of the merger:

• Customers, investors, shareholders, and employees would benefit from this merger since the operations of Larsen & Toubro Infotech (LTI) and Mindtree are extremely complementary.
• This integration will help to build the combined strengths of both these organizations to unlock synergies through scale, cross-vertical expertise, and talent pool.
• The combined entity will also enable it to tap into broader market prospects, reduce costs, and lower risk.
• The merged business will overtake Tech Mahindra to become the fifth-largest IT services provider by market capitalization.

About Larsen & Tourbo:

• Larsen & Toubro Ltd, commonly known as L&T, is an Indian multinational conglomerate company, with business interests in engineering, construction, manufacturing, technology and financial services.
• The company is counted among the world's top five construction companies.
• It was founded on 7 February 1938.
• It is headquartered in Mumbai, Maharashtra.
• The current CEO L&T is Sanjay Jalona.