The deal will make Adani India’s second largest cement company after Aditya Birla Group’s UltraTech Cement
The deal will make Adani India’s second largest cement company after Aditya Birla Group’s UltraTech Cement
The Adani family, through an Offshore Special Purpose Vehicle (SPV), said it has entered into definitive agreements for acquisition of Switzerland-based Holcim Ltd’s entire stake in Ambuja Cements Ltd and ACC Ltd, two of India’s leading cement companies.
Through its subsidiaries, Holcim holds 63.19% in Ambuja Cements and 54.53% in ACC (of which 50.05% is through Ambuja Cements).
An open offer has been made as per regulatory norms.
Adani said, “The value of the Holcim stake and open offer consideration for Ambuja Cements and ACC is US$10.5 billion, the largest acquisition by Adani to date, and India’s so far in the infrastructure and materials space.” largest M&A transaction. Statement.
The deal makes Adani the second largest cement player after Aditya Birla Group’s UltraTech Cement.
Gautam Adani, Chairman, Adani Group said, “Our foray into the cement business is yet another confirmation of our belief in the growth story of the country.
He said, “Not only is India expected to remain one of the world’s largest demand-driven economies for several decades, India also remains the world’s second largest cement market and has yet to exceed the global average per capita cement consumption. less than half that,” he said. ,
“In statistical comparison, China’s cement consumption is seven times higher than that of India. When these factors are combined with the multiple adjacencies of our existing businesses which include Adani Group’s port and logistics business, energy business and real estate business, we are confident that we can create and own a uniquely integrated and differentiated business model. will be able to install. For significant capacity expansion,” he said.
“I am delighted that the Adani Group is acquiring our business in India to lead its next era of growth,” Jan Janish, CEO, Holcim Ltd., said in a statement.
Ambuja Cements Limited and ACC Limited currently have a combined installed production capacity of 70 million tonnes per annum (MTPA). They have 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants and more than 50,000 channel partners across India.
“Both Ambuja and ACC will benefit from the synergy with the integrated Adani Infrastructure Platform, particularly in the areas of raw materials, renewable energy and logistics, where the Adani portfolio companies have vast experience and deep expertise. This will enable higher margins and return on capital employed for both the companies,” said the Adani Group statement.
The acquisition is subject to regulatory approval and conditions.
Adani seems to be on an acquisition spree. On May 13, 2022 Adani Enterprises Limited informed the stock exchanges that its wholly owned subsidiary AMG Media Networks Limited has signed an agreement to acquire 49% stake in Quintillion Media Limited and Quintillion Business Media Limited. Quint Digital Media Limited is also involved in the deal for an unspecified amount.