The Board of Directors of Millat Tractors Limited (MTL) has approved a business expansion plan to amalgamate its subsidiary, Millat Equipment Limited with and into MTL with effect from January 01, 2024, according to a notice sent to the Pakistan Stock Exchange (PSX) on Monday.
“The amalgamation would lead to an optimised manufacturing process and improved product quality. It will further increase the asset base and size of MTL and as a result, MTL will be in a position to effectively and efficiently benefit from economies of scale with respect to the combined business,” read the notice.
Further business expansion opportunities for MTL are also expected to arise due to this proposed amalgamation, the notice added.
The proposed transaction would be subject to receipt of all requisite corporate and regulatory authorizations, consents and approvals, the company said.
