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Williamson Tea Assam Ltd. and McLeod Russel merger meet today
Kolkata: The BM Khaitan Group has decided to merge Williamson Tea Assam Ltd. into its tea outfit, McLeod Russel India Ltd. A formal notice was sent to the stock exchanges stating that the matter will be considered in the next board meeting scheduled on Monday, 31st Oct, 2005.

Once this move fructifies, McLeod Russel's dominance as the world's largest bulk tea producer will increase, with its annual tea production jumping to 62 million kg. The combined entity's total garden strength will increase as well, for the 17 gardens of WTA will be added to McLeod Russel's 23 tea estates in Assam and five more in the Dooars.

On Monday, the boards of both the companies will also finalise their second quarter and half yearly results.

In the last one month, McLeod Russel has also completed the mandatory open offer for the minority shareholders of WTA. The formal acquisition of WTA was made in June this year when McLeod Russel bought 100 per cent of Borelli Tea Holdings Ltd, UK, from Williamson Tea Holdings plc, London, which held 70 per cent of WTA.

The total cost of the acquisition was £21.35 million or Rs168.66 crore. The Khaitans paid Rs170 per share for WTA to the Magors. It includes a non-competition fee in the Indian tea market of Rs30 per share.
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