Larsen & Toubro Ltd. is in talks to merge its thermal power business with the Indian unit of Singapore-based Sembcorp Industries Ltd., according to people with knowledge of the matter.
The share-swap deal will help India’s largest engineering conglomerate pare debt, the people said, asking not to be identified as the deliberations are private. The transaction could value the combined business at around $4.5 billion including debt, and would exclude Sembcorp’s renewable energy business, one of the people said.
