CURRENT AFFAIRS

Detailed explanation-1: -Aditya Birla Nuvo emerged in 2005 after the Aditya Birla Group decided to rename Indian Rayon and Industries Ltd (a company founded in 1956) and make it a vehicle to hold its businesses in the areas of finance, apparel and fashion, telecom and information technology (IT).

Detailed explanation-2: -Aditya Birla Nuvo Ltd (ABNL) will merge with Grasim Industries Ltd in a bid to unlock shareholder value and create a $9 billion (Rs 59, 766 crore) enterprise. With the merger, the Aditya Birla Group decided to hive off its financial services business into a separate entity, which will be listed later.

Detailed explanation-3: -The promoters will own 39 percent in the combined entity and public shareholders will hold the rest. The merger is aimed at simplifying the cross-holding structure. The combined entity will hold 28 percent in Idea Cellular, 11.4 percent in AB Fashions and 4.3 percent in Hindalco.

Detailed explanation-4: -The two companies, Grasim and Aditya Birla Nuvo (AB Nuvo), have entered into a two-way merger. The first step involves merging the two companies and the second would be a spin-off of the financial division.