Construction Industry News
Gautam Adani signed a $10.5 billion deal giving his conglomerate a 63.19% stake in the operations of Holcim Ltd India, Ambuja Cements Ltd and its subsidiary ACC Limited.
The Adani Group has now surpassed the Aditya Birla Group's UltraTech Cement as the country's second largest cement producer. The JSW Group was also interested in acquiring the Ambuja-ACC joint venture.
Holcim owns 63.19% of Ambuja Cements and 54.53% of ACC through its subsidiaries (of which 50.05% is held through Ambuja Cements).
According to the Adani Group, the value of the Holcim share and the open offer for Ambuja Cements and ACC totals $10.5 billion, making it India's largest M&A deal in the infrastructure and materials market.
The deal is likely to net Holcim 6.4 billion Swiss francs in cash. The Adani Group said it would make an open offer to buy additional shares. The deal is to be completed in the second half of 2022.
Holcim's latest effort to minimize its reliance on carbon-intensive cement production, an industrial process that produces significant amounts of CO2 emissions.
In recent years, the Adani Group has not only been running ports, power plants and coal mines, but also airports, data centers and renewable energy.
In 2021, the group established two cement subsidiaries: Adani Cementation Ltd, which planned to build two cement plants in Gujarat and Maharashtra, and Adani Cement Ltd.
Gautam Adani told the media that their entry into the cement market is just a confirmation of their belief in the country's economic story.
He said India is likely not only 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 accounting for less than half of the global average cement consumption per capita. population has.
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