Adani family acquires Holcim’s stake in Ambuja Cement, ACC for US$10.5 billion


The deal will make Adanis the second largest cement supplier in India after Aditya Birla Group’s UltraTech Cement

The deal will make Adanis the second largest cement supplier in India after Aditya Birla Group’s UltraTech Cement

The Adani family announced that they have entered into definitive agreements to acquire, through an offshore special purpose vehicle (SPV), Switzerland-based Holcim Limited’s entire interest in Ambuja Cements Limited and ACC Limited, two of India’s leading cement companies.

Holcim, through its subsidiaries, owns 63.19% of Ambuja Cements and 54.53% of ACC (of which 50.05% is held through Ambuja Cements).

An open offer has been made in accordance with regulatory norms.

“The value of Holcim’s stake and consideration for the open offer for Ambuja Cements and ACC is USD 10.5 billion, making this Adani’s largest acquisition to date and India’s largest infrastructure and materials M&A transaction to date,” said Adanis in a statement.

This deal makes Adanis the second largest cement supplier after UltraTech Cement of the Aditya Birla Group.

“Our entry into the cement business is a further validation of our belief in our country’s growth story,” said Gautam Adani, Chairman of Adani Group.

“Not only is India expected to remain one of the largest demand-driven economies in the world for several decades, India also remains the second-largest cement market in the world and yet has less than half of the global average cement consumption per capita,” he said.

“In a statistical comparison, cement consumption in China is more than seven times as high as in India. When these factors are combined with the diverse neighborhoods of our existing businesses, which include Adani Group’s ports and logistics business, energy business and real estate business, we believe we will be able to build a unique integrated and differentiated business model and commit ourselves to a significant capacity expansion,” he added.

“I am delighted that the Adani Group is acquiring our business in India to lead the next growth era,” said Jan Jenisch, CEO of Holcim Limited, in a statement.

Ambuja Cements Limited and ACC Limited currently have a combined installed production capacity of 70 million tonnes per year (MTPA). They have 23 cement plants, 14 grinding plants, 80 ready-mixed concrete plants and over 50,000 distributors across India.

“Both Ambuja and ACC will benefit from synergies with the integrated Adani infrastructure platform, particularly in the areas of raw materials, renewable energy and logistics, where the companies in the Adani portfolio have great experience and in-depth expertise. This will allow for higher margins and returns on invested capital for the two companies,” the Adani Group statement said.

The acquisition is subject to regulatory approvals and conditions.

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