Adani Group buys Holcim’s stake in Ambuja Cement for $10.5B

adani group buys holcims stake in ambuja cement for 10

Billionaire Gautam Adani and his group will acquire cement companies ACC Ltd. and Ambuja Cements Ltd., held by Holcim Ltd.

The Adani Group, via an offshore special purpose vehicle, has entered into definitive agreements to purchase the Swiss group’s entire stake in two cement companies, the Adani Group said in a statement.

The statement said, The value for Holcim’s stake and open offer consideration for Ambuja Cements and ACC was nearly $10.5 billion, which makes this the largest ever acquisition by Adani Group.

Holcim held 54.33% in ACC, of which 50.05% is held through Ambuja and 63.19% in Ambuja Cements. The Adani Group and the JSW Group were the bidders for the cement firms, with some reports suggesting late interest by Ultratech Cement Ltd. for the cement assets.

The deal translates into Rs.385 per share for Ambuja Cements and Rs. 2,300 a share for ACC. The Ambuja Cement stock closed on Friday at Rs. 359.10, while ACC ended at Rs 2,113.30 apiece.

An Adani group statement said with India’s cement consumption at just 242 kg per capita, in contrast to the global average of 525 kg per capita, there is significant potential for the growth of the cement industry in India.