Ambuja Cements to acquire majority stake in Sanghi: Sources

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The announcement of the deal by Ambuja Cements is expected to happen soon, possibly on Wednesday, according to unnamed sources who chose to remain anonymous due to the confidentiality of the decision. The exact stake percentage was not disclosed by these sources. NEW DELHI: India's Ambuja Cements has entered into an agreement to acquire a majority stake in the operations of Sanghi Industries, as per two sources with direct knowledge. This deal is expected to strengthen the cement operations of Gautam Adani's firm, adding to its market influence and presence in the industry. The announcement of the Ambuja deal is expected to be made soon, possibly on Wednesday, as disclosed by unnamed sources who opted not to reveal their identities due to the confidential nature of the decision. The exact stake percentage involved in the deal was not disclosed by these sources. According to one of the sources, the deal for acquiring Sanghi Industries was finalized by valuing the company's enterprise at 60 billion rupees ($729 million). A recent report by India's Economic Times indicated that Adani was one of the leading contenders in the competitive race to acquire Sanghi Industries at the mentioned enterprise value. Ambuja Cements Adani Group did not respond to a request for comment. Sanghi Cement declined to comment. Adani holds the position of India's second-largest cement producer, standing just behind UltraTech Cement. The company is the owner of Ambuja Cements and its subsidiary, ACC Ltd, which together have a total production capacity exceeding 65 million tonnes. Furthermore, Adani operates more than a dozen manufacturing plants spread across various locations in India. Sanghi is a prominent cement manufacturer based in the state of Gujarat, located in western India. According to their website, they boast a production capacity of 6.1 million metric tonnes per annum. The disclosure of Ambuja's deal is anticipated to occur shortly, potentially on Wednesday, as per undisclosed sources who opted for anonymity due to the confidentiality of the decision. The exact stake percentage was not revealed by these sources. In June, a representative from the Adani Group informed Reuters that cement was a strategic priority, and they had intentions to explore various greenfield opportunities.   Also Read: Mukesh Ambani’s RIL Arm To Build Greenfield Smart City Near Gurugram