Semen Baturaja signs conditional deal to merge subsidiary into parent
The Indonesian cement producer owns 99.94 per cent of PT Baturaja Multi Usaha. The merger remains subject to conditions and approvals.
PT Semen Baturaja (Persero) Tbk. (SMBR) and its subsidiary PT Baturaja Multi Usaha (BMU) signed a conditional merger agreement on 30 October 2026, under which BMU would be absorbed into the cement producer.
According to a company disclosure cited on 2 November 2026, the proposed transaction forms part of a plan to streamline the group through an upstream merger. SMBR controls BMU through its ownership of 99.94 per cent of the subsidiary’s issued capital.
The merger can take effect only once the conditions are met and the relevant parties and authorities have granted approval. It must also comply with both companies’ articles of association and applicable laws and regulations.
Semen Baturaja would remain as the surviving entity once the merger becomes effective. Management said BMU would cease to exist by operation of law, without liquidation, and that the transaction would have no material impact on Semen Baturaja’s business continuity.
