Tech Mahindra announced the approval of a merger between its wholly-owned step-down subsidiaries, LCC North Central Europe, B.V. and LCC Europe B.V., effective April 1, 2025. This strategic move aims to streamline operations and reduce compliance risks. The merger is subject to regulatory approvals in the country of incorporation. Post-merger, LCC North Central Europe, B.V. will cease to exist as a separate entity.
Subsidiary Merger Details
Tech Mahindra has approved a plan to merge LCC North Central Europe, B.V. (LCC NCE) with LCC Europe B.V. The effective date of the merger is set for April 1, 2025. The decision was made by the Board of Directors of the respective companies on December 1, 2025.
Entities Involved
LCC North Central Europe, B.V. (LCC NCE), the transferor company, is incorporated in the Netherlands. As of financial year 2024-25, its turnover was INR 136.70 million. It is a wholly-owned subsidiary of LCC Europe B.V., and a step-down subsidiary of Tech Mahindra. It focuses on the design, construction, and management of data centers.
LCC Europe B.V. (LCC EUROPE), the transferee company, is also incorporated in the Netherlands. As of financial year 2024-25, its turnover was Nil. It serves as a holding company with investments in LCC Group entities across Europe, Africa, and Latam.
Rationale Behind the Merger
The primary goal of this merger is to consolidate entities, thereby reducing the number of entities within the group. This will optimize operational costs and significantly reduce compliance-related risks.
Post-Merger Structure
Upon completion of the transaction, LCC North Central Europe, B.V. will cease to be a wholly-owned subsidiary of LCC Europe B.V., ultimately simplifying Tech Mahindra’s corporate structure.
Financial Implications
The merger will not involve any cash consideration or the issuance of new shares. The investment of LCC Europe B.V. in LCC North Central Europe, B.V. will be cancelled when the merger becomes effective.
Source: BSE