In a communication to the Madras Stock Exchange, Alstom said the merger would take effect retrospectively from April 1 this year.

When contacted, Alstom company secretary KS Natarajan said the merger would improve operational synergy of Alstom and added that the merger would be subject to the approval of share-holders of both firms, the statutory authorities and the courts.

The merger plan, which envisages one share of Alstom for every share of Alstom T&D Transformers, would help the global major in its future projects, the official said. Alstom holds 79.7 per cent stake in Alstom T&D, Which is an unlisted company engaged in the manufacture of distri-bution transformers for the power supply industry.