The Adani family announced that it had entered into definitive agreements to buy Holcim Limited’s full investment in Ambuja Cements Limited and ACC Limited, two of India’s major cement producers, using an offshore special purpose vehicle (SPV).
Holcim owns 63.19 percent of Ambuja Cements and 54.53 percent of ACC through its subsidiaries (of which 50.05 percent is held through Ambuja Cements). In compliance with regulatory requirements, an open offer has been made.
10.5 billion by Adani
“The total value of the Holcim holding an open offer consideration for Ambuja Cements and ACC is USD 10.5 billion,” the Adanis said in a statement. “This is Adani’s largest-ever purchase and India’s largest-ever M&A deal in the infrastructure and materials area.” After the Aditya Birla Group’s UltraTech Cement, Adanis becomes the second-largest cement company.
“Our entry into the cement market confirms our trust in our country’s growth story,” said Gautam Adani, chairman of the Adani Group. “Not only is India anticipated to remain one of the world’s largest demand-driven economies for decades, but it is also the world’s second-largest cement market, despite having less than half of global average per capita cement consumption,” he said.
“China’s cement consumption is more than seven times that of India, according to statistics.” We believe that by combining these factors with the several adjacencies of our existing businesses, such as the Adani Group’s ports and logistics, energy, and real estate businesses, we will be able to create a uniquely integrated and differentiated business model and position ourselves for significant capacity expansion,” he added.
Jan Jenisch, CEO of Holcim Limited, stated in a statement, “I am happy that the Adani Group is acquiring our business in India to drive its next age of growth.”
Capacity of of Ambuja Cements Limited and ACC Limited is now 70 million tonnes per annum
The combined installed production capacity of Ambuja Cements Limited and ACC Limited is now 70 million tonnes per annum (MTPA). In India, they operate 23 cement facilities, 14 grinding stations, 80 ready-mix concrete plants, and over 50,000 channel partners.
“Synergies with the entire Adani infrastructure platform will benefit both Ambuja and ACC, particularly in the areas of raw materials, renewable energy, and logistics, where Adani Portfolio firms have broad experience and profound expertise.” The Adani Group stated that “this will enable improved margins and return on capital employed for the two enterprises.” The purchase is contingent on regulatory approvals and conditions.
The Adani family appears to be on a buying binge. Adani Enterprises Limited announced to the stock exchanges on May 13, 2022, that its wholly-owned subsidiary, AMG Media Networks Limited, has reached an agreement to purchase a 49 percent investment in Quintillion Media Limited and Quintillion Business Media Limited. Quint Digital Media Limited is also included in the acquisition, which is for an undisclosed sum.