Adani To Acquire Holcim India Assets For USD 10.5 Billion
Gautam Adani’s richest group of men announced on Sunday that they reached an agreement to acquire Holcim India Assets for USD 10.5 billion, reflecting the port-to-energy conglomerate’s entry into the cement sector.
Adani Group will acquire 63.1% of Ambuja Cements Ltd together with related assets. Local subsidiaries include Ambuja ACC Ltd, which is also listed.
“The Adani family, through its offshore special purpose vehicle, has announced that it has entered into definitive agreements to acquire Swiss-based Holcim Ltd’s 100% interest in two of India’s leading cement companies – Ambuja Cements Ltd and ACC Ltd,” said the group . in an opinion.
Holcim India, through its subsidiaries, owns 63.19% in Ambuja Cement and 54.53% in ACC (of which 50.05% is owned through Ambuja Cement).
“Holcim’s bet value and open offer for Ambuja Cements and ACC is USD 10.5 billion, which represents Adani’s largest acquisition to date and India’s largest infrastructure and content M&A transaction to date,” the statement said.
Holcim India said in a statement, “The respective offering share prices of Rs 385 for Ambuja Cement and Rs 2,300 for ACC represent cash proceeds of CHF 6.4 billion (Swiss Francs) for Holcim.”
In recent years, Adani has diversified from its core business of operating ports, power plants and coal mines to airports, data centers and clean energy.
The group established two cement subsidiaries last year – Adani Cementation Ltd, which planned to establish two cement units in Dahej in Gujarat and Raigarh in Maharashtra; and Adani Cement Ltd.
Holcim, the world’s largest cement producer, announced last month that it was leaving the country after a long struggle here. The company has a capacity of 66 million tones per year (MTPA) through two listed entities ACC and Ambuja.
Holcim India has held talks with a number of business houses, including the Aditya Birla Group, which owns cement giant UltraTech and steel-to-energy conglomerate JSW Group.
The group, which entered the market 17 years ago, owns 63.19% of Ambuja and 4.48% of ACC, while Ambuja owns 50.05% of ACC.
CCT has 17 cement manufacturing units, 9 owned power plants and 6,643 employees, as well as a nationwide distribution network of 56,000 suppliers and retailers.
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Ambuja Cements has a cement capacity of 31 million tons nationwide with 6 integrated cement plants and 8 cement grinding plants.
In 2015, Holcim merged with Lafarge France to form Lafarge Holcim. In June 2016, Ambuja bought Holcim India’s 24% interest in ACC, making the latter a subsidiary of Abuja with a 50.05% interest.
The Holcim event is part of the Group’s “2025 strategy” which strives for sustainable solutions for the building materials industry. The importance of cement in the Group as a whole is already declining compared to ready-made solutions made of concrete, aggregates, roofs and green buildings.
UltraTech Cement is the leader in this segment with a condensing capacity of 119.95 million tones of gray cement per year (MTPA).
“Our entry into the cement business is a further validation of our belief in our nation’s growth story,” said Gautam Adani, Chairman of the Adani Group. “Not only is India expected to remain one of the world’s largest demand-driven economies for many years to come, India also remains the second largest cement market in the world and still less than half the global average. Cement consumption per capita.”
Statistically, Chinese cement consumption is more than 7 times India’s consumption. “By combining these factors with the diverse proximity of our existing businesses, including Adani Group’s ports and logistics business, energy business and real estate business, we believe we will be able to create a unique, integrated and differentiated business model and… build a group. We are looking forward to a significant increase in capacity,” said Adani, who was recently snapped by Mukesh Ambani as the country’s richest man.
Adani also said that Holcim’s global leadership in cement production and sustainability best practices bring us some of the cutting-edge technologies that will enable the group to accelerate the journey towards greener cement production.