B M Khaitan family-controlled Williamson Magor Group and Manoj Toshniwal and Ramesh Bardia-promoted EMC Ltd joined hands to form an estimated ₹7,000 crore turnover engineering conglomerate through a three-way merger.

According to market sources, going by the indicative networth of the companies, EMC may have a higher stake in the conglomerate.

According to filings by Williamson Magor group’s entities — Kilburn Engineering Ltd and McNally Bharat Engineering Co Ltd (MBE) — both EMC and MBE proposed to be merged with KIL. According to sources, “final details” of the proposed merger may be announced within a fortnight. MBE and KIL said the three companies agreed to form a committee “to oversee the preparation of a draft Scheme of Amalgamation” and appoint professional deal advisors.

EMC, a privately held ₹3,583 crore power transmission & distribution system solution provider, has already made a strategic investment in ₹2,170 crore MBE and currently (along with its associate entity) holds 38 per cent stake in the company as co-promoter.

MBE is a debt-heavy and loss-making company, while process equipment and food processing equipment maker KIL with ₹120 crore turnover is profitable and largely debt-free.

Williamson Magor Group sources told BusinessLine that the combined financial muscle and the engineering competence of the proposed entity, whose name will be decided post merger, will improve because of accentuated synergy.

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