Adani Acquires Holcim Cement Stake in India for $10.5 Billion
- May 16, 2022
- Arjun Pandit
India's conglomerate Adani Group agreed to acquire stakes in two cement companies controlled by Switzerland-based Holcim Group for $10.5 billion.
Adani Group plans to acquire stakes in two cement companies held by Switzerland-based Holcim Limited for as much as $10.5 billion.
The deal has been in the works for two months and attracted offers from the largest cement maker UltraTech and Jindal Group of companies.
Gautam Adani, India's richest man, controlled Adani Enterprises and related companies plan to offer $6.4 billion in cash for the 63.1% stake in Ambuja Cements Ltd and 54.5% stake in ACC Limited.
The remaining stakes will be purchased through the open offers meeting the regulatory requirements of local stock exchanges.
Ambuja Cements jumped 2.3% to 367 rupees, below the offer price of 385 rupees and ACC gained 3.8% to 2,192.50 rupees below the offer price of 2,300 rupees.
With the acquisition. Adani Group will vault to the second largest cement producer in India.
Ambuja and ACC with the combined cement production capacity of 70 million tons will lag only the largest maker UltraTech with 120 million ton annual capacity.
Holcim first acquired its stake in Ambuja Cement in January 2006 and later increased its stake in a complex transaction involving ACC Limited in 2013.
At the time of acquisition, Gujarat Ambuja was the largest cement maker with 33 million tons of annual capacity ahead of the Aditya Birla Group controlled UltraTech Cement.