INDIA: Gautam Adani, the Indian billionaire, won the contest to buy Swiss cement giant Holcim’s share in Ambuja Cements and its subsidiary ACC for $10.5 billion (about Rs 81,361 crore), including open offers, on Sunday.
The Adani family stated that it has entered into formal agreements for the acquisition of Holcim Ltd’s full share in two of India’s major cement businesses, Ambuja Cements and ACC, through an offshore special-purpose vehicle, the Adani group said in a statement.
The firm outbid Ultratech and JSW to enter the cement sector, becoming the country’s second-largest cement producer with a capacity of 70 million tonnes per year.
Ambuja Cement holds 63.19 percent of Holcim, while ACC owns 4.48 percent. In turn, Ambuja Cement owns 50.05 percent of ACC. According to market regulator Sebi’s rules, the Adani family will launch an open bid to purchase 26% of these two firms from non-promoter shareholders.
The amount of the Holcim holding and the open offer consideration make this Adani’s largest purchase to date, as well as India’s largest infrastructure and materials M&A transaction. “Our entry into the cement market is another another confirmation of our trust in our country’s economic narrative,” Gautam Adani, the group’s chairman, said.
“Not only is India anticipated to remain one of the world’s greatest 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.” China’s cement usage 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.” Adani continued.