Adani Group buys Ambuja and ACC Cement business, deals for $10.5 billion
Adani Group has done big business deals in the cement business sector. Adani Group has signed a deal to acquire the India business of the world’s leading cement company Holcim Group. Adani Group has finalized a business deal to buy Holcim Group’s entire stake in two of India’s biggest cement companies Ambuja Cement and SC (ACC) for $10.5 billion (Rs 80,800 crore). This is the biggest acquisition till date by the Adani Group. With this deal, the group working from the port to the energy sector has also entered the cement sector.
Big player in cement business
At present, after this deal, Adani Group will become the second largest player in the field of domestic cement industry. This deal is being said to be the biggest acquisition in the country’s infra and material sector. Over the years, the Adani Group has grown from its core business of port operations, power plants and coal mines to airports, data centers and clean energy. The group had started two cement subsidiaries last year. These two subsidiaries were Adani Cementation Limited and Adani Cement Limited.
Ultratech largest company right now
Aditya Birla Group’s UltraTech is currently the largest company in the Indian cement market. UltraTech has an annual capacity of 117 million tonnes. Whereas Ambuja Cement and ACC Limited have a combined capacity of 66 million tonnes per annum. That is, now the Adani Group has directly reached the second number in the Indian cement market.
Ambuja Cement and ACC are listed in the market
Ambuja Cement and ACC Limited are listed companies in the Indian stock market. The market cap of Ambuja Cement is more than 70 thousand crores. Holcim holds 63.19 percent of the company. At the same time, the market cap of ACC is more than Rs 40 thousand crore, in which Holcim’s share is 54.53 percent. Holcim Group has been doing business in India for almost 17 years. After the deal, Adani Group Chairman Gautam Adani said that our foray into the cement business is another testament to our faith in the country’s growth story. Combining Holcim’s cement companies in India with our green energy and logistics will make us the world’s greenest cement company.
Now regulatory approval will have to be taken
This business deal will be completed after regulatory approval. The open offer price for Ambuja Cement is Rs 385 per share and for ACC it is Rs 2,300 per share. Holcim’s stake in Ambuja Cement and ACC and the open offer consideration is valued at $10.5 billion.
