India's multi-billion dollar company, Adani Group recently acquired Ambuja Cements and ACC.
Adani Group Completes Acquisition of Ambuja Cements and ACC | Became 02nd Largest Cement Firm in India
The group through its special purpose vehicle Endeavor Trade and Investment Ltd completed the acquisition after completing a transaction and an open offer with Switzerland’s firm Holcim, according to a statement released on Friday.
The transaction included the acquisition of Holcim's stake in Ambuja and ACC as well as an open offer in both the entities as per SEBI regulations, the statement said.
It also said Holcim's stake and open offer for Ambuja Cements and ACC are being considered for $06.50 billion, making it the largest acquisition by Adani to date, and India's highest ever M&A transaction in the infrastructure and materials space.
Post the transaction, Adani and the group hold 63.15% stake in Ambuja and 56.69% in ACC (of which 50.05% is through Ambuja Cements).
Speaking about the acquisition, Adani Group Chairman said: ‘What makes cement an exciting business is the headroom for growth in India, which is more than every other country beyond 2050.’
‘Cement is a game of economics dependent on logistics and distribution costs and energy costs, and the ability to leverage a digital platform to transform production as well as gain significant supply chain efficiencies. Each one of these capabilities is a core business for us and therefore provides our cement business a set of unmatched adjacencies, he said, adding that these adjacencies eventually drive competitive economics.
Our position as one of the world's largest renewable energy companies will enable us to manufacture premium quality green cement in line with the principles of circular economy. All these dimensions put us on track to become the largest and most efficient manufacturer of cement by no later than 2030, he added.
Ambuja Cements and ACC currently have a combined installed production capacity of 67.5 MTPA. Both companies are amongst the strongest brands in India, with a depth of manufacturing and supply chain infrastructure, represented by their 14 integrated units, 16 grinding units, 79 ready-mix concrete plants, and over 78,000 channel partners across India.
The board of Ambuja Cements approved an investment of INR 20,000 crore in Ambuja through preferential allotment of warrants. This will prepare Ambuja to capture the growth in the market, it said.
However, Aditya Birla Group firm UltraTech leads the cement sector with an installed capacity of over 1000 MTPA
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