India's Tata Coffee shares soar on merger with Tata Consumer

Tata Coffee

30/03/2022 05:34

BENGALURU, March 30 (Reuters) - Shares of India's Tata
Coffee Ltd  TACO.NS  surged up to 12% on Wednesday after parent
Tata Consumer Products Ltd  TACN.NS  said https://www.bseindia.com/xml-data/corpfiling/AttachLive/eef501d6-b06a-4d55-b468-c4180c5af45b.pdf
 it would streamline its coffee business by merging the company
with itself.
    Tata Consumer said the plantation business of Tata Coffee
would be demerged into Tata Consumer Products' beverages and
foods unit, which is known for brands like "Tata Tea" and
"Tetley".
    The remaining business of Tata Coffee, which houses
extraction and coffee brands, would combine with Tata Consumer.
    Analysts at Nomura said they believed the merger would add
to Tata Consumer's earnings by 3%-4%, while also improving the
company's supply chain.
    Tata Coffee, which makes instant coffee, pepper and tea, was
up 10.5% at 216.90 rupees, as of 0402 GMT, while Tata Consumer
climbed 4.7%.  

 (Reporting by Rama Venkat in Bengaluru; Editing by Subhranshu
Sahu)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))