Firstly, Tata Chemicals and Tata Global are not merging. Tata Chemicals is transferring its consumer business to Tata global while the non-consumer business will continue to remain with Tata Chemicals. So it is not a merger, only a transfer of one of its divisions. The consumer division of Tata Chemicals produces Tata Salt and other consumer products and this part of the larger plan of the Tata Group to consolidate all like businesses under one head rather than spreading out under different companies. Tata Global will buy the edible salt, spices and lentils business of Tata Chemicals and will issue shares in exchange. Tata Global will also change its name to Tata Consumer Products Ltd. after the deal is completed.

In the transfer deal, shareholders of Tata Chemicals will get 1.14 shares of Tata Global for every share held. Effectively, the newly merged Tata Consumer Products Ltd will have total combined turnover of Rs.9100 crore and an EBITDA of 1154 crore. After the merger, Tata Consumer Products will have a portfolio of tea, coffee, salt, spices and lentils while Tata Chemicals will retain its core business of Soda Ash. Both the companies are expected to benefit from this deal. Tata Global will get a much wider and highly profitable portfolio of products to serve the consumer while Tata Chemicals shareholders will get a focused agrochemicals business as well as a stake in the consumer products business. You must look to hold on to the shares of Tata Chemicals and get the shares allotted in your name.