Mahanagar Gas Limited (MGL) has announced the merger of its wholly-owned subsidiary, Unison Enviro Private Limited (UEPL), with itself, following approval from its Board of Directors. The merger is part of MGL’s strategy to consolidate and expand its city gas distribution business.
The merger will bring operational synergies and cost optimizations by reducing managerial overlaps and streamlining administration. MGL expects the consolidation to enhance capital utilization, achieve economies of scale, and improve its market reach across the regions served by both MGL and UEPL. These regions include parts of Maharashtra and Karnataka, such as Ratnagiri, Latur, Osmanabad, Chitradurga, and Davangere.
As UEPL is a wholly-owned subsidiary, the merger will not involve any share exchange or cash consideration. The company has stated that the merger will not have a material impact on its financials. The transaction is subject to statutory and regulatory approvals, including clearance from the National Company Law Tribunal (NCLT).
MGL believes that the merger will create a stronger platform for future growth, improve cash flows, and maximize shareholder value by leveraging the combined assets and expertise of both companies.
