Adani acquires Ambuja Cements and ACC, becomes India's second largest cement player
By Vipin Vijayan | First Published Sep 16, 2022, 5:24 PM ISTPost the transaction, Adani will hold 63.15 per cent in Ambuja Cements and 56.69 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements).
The Adani Group had become India's second largest cement player Family after it successfully acquired Ambuja Cements Limited and ACC Limited.
The transaction, done through a special purpose vehicle named Endeavour Trade and Investment Ltd, involved acquisition of Holcim's stake in Ambuja and ACC along with an open offer in both entities as per SEBI Regulations.
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The value of the Holcim stake and open offer consideration for Ambuja Cements and ACC is $6.5 billion, which makes this the largest-ever acquisition by Adani, and also India’s largest ever M&A transaction in the infrastructure and materials space.
Post the transaction, Adani will hold 63.15 per cent in Ambuja Cements and 56.69 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements).
Speaking about the acquisition, Adani Group Chairman Gautam Chairman said: 'What makes cement an exciting business is the headroom for growth in India, which exceeds that of every other country well beyond 2050.'
'Cement is a game of economics dependent on logistics and distribution costs and energy costs, and the ability to leverage a digital platform to transform production as well as gain significant supply chain efficiencies. Each one of these capabilities is a core business for us and therefore provides our cement business a set of unmatched adjacencies,' he said, adding that these adjacencies eventually drive competitive economics.
'Our position as one of the largest renewable energy companies in the world will help us manufacture premium quality green cement well in line with the principles of a circular economy. All of these dimensions put us on track to become the largest and most efficient manufacturer of cement by no later than 2030,' he added.
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