Adani to acquire Holcim’s stake in Ambuja Cements and ACC Ltd

Ahmedabad, Might 15 (IANS) The Adani (NS:) Household, via an offshore particular function car, introduced that it had entered into definitive agreements for the acquisition of Switzerland-based Holcim (SIX:) Ltd’s whole stake in two of Indias main cement corporations -Ambuja Cements Ltd and ACC Ltd (NS:).

Holcim, via its subsidiaries, holds 63.19 per cent in Ambuja Cements (NS:) and 54.53 per cent in ACC (of which 50.05 per cent is held via Ambuja Cements). The worth for the Holcim stake and open provide consideration for Ambuja Cements and ACC is $10.5 billion, which makes this the most important ever acquisition by Adani, and India’s largest ever M&A transaction within the infrastructure and supplies area.

“Our transfer into the cement enterprise is yet one more validation of our perception in our nation’s progress story,” mentioned Adani Group Chairman Gautam Adani.

“Not solely is India anticipated to stay one of many world’s largest demand-driven economies for a number of a long time, India additionally continues to be the world’s second largest cement market and but has lower than half of the worldwide common per capita cement consumption. In statistical comparability, China’s cement consumption is over 7x that of India’s. When these elements are mixed with the a number of adjacencies of our present companies that embrace the Adani Group’s ports and logistics enterprise, power enterprise, and actual property enterprise, we consider that we can construct a uniquely built-in and differentiated enterprise mannequin and set ourselves up for vital capability enlargement.”

Adani added: “Holcim’s world management in cement manufacturing and sustainability greatest practices brings to us a number of the cutting-edge applied sciences that may permit us to speed up the trail to greener cement manufacturing. As well as, Ambuja Cements and ACC are two of the strongest manufacturers recognised throughout India. When augmented with our renewable energy technology footprint, we acquire an enormous headstart within the decarbonisation journey that could be a should for cement manufacturing. This mixture of all our capabilities makes me assured that we can set up the cleanest and most sustainable cement manufacturing processes that may meet or exceed world benchmarks.”

“I’m delighted that the Adani Group is buying our enterprise in India to guide its subsequent period of progress,” Holcim Ltd CEO Jan Jenisch mentioned. “Mr Gautam Adani is a extremely recognised enterprise chief in India who shares our deep dedication to sustainability, individuals and communities. I want to thank our 10,000 Indian colleagues who’ve performed a vital position within the improvement of our enterprise over time with their relentless dedication and experience. I’m assured that the Adani Group is the proper house for them in addition to our clients to proceed to thrive.”

With India’s cement consumption at simply 242 kg per capita, as in comparison with the worldwide common of 525 kg per capita, there’s vital potential for the expansion of the cement sector in India. The tailwinds of fast urbanisation, the rising center class and reasonably priced housing along with the post-pandemic restoration in building and different infrastructure sectors are anticipated to proceed driving the expansion of the cement sector over the subsequent a number of a long time.

Ambuja Cements and ACC at present have a mixed put in manufacturing capability of 70 MTPA. The 2 corporations are among the many strongest manufacturers in India with immense depth of producing and provide chain infrastructure, represented by their 23 cement crops, 14 grinding stations, 80 ready-mix concrete crops and over 50,000 channel companions throughout India.

Each Ambuja and ACC will profit from synergies with the built-in Adani infrastructure platform, particularly within the areas of uncooked materials, renewable energy and logistics, the place

Adani Portfolio corporations have huge expertise and deep experience. This may allow larger margins and return on capital employed for the 2 corporations. The businesses will even profit from Adani’s deal with ESG, Round Economic system and Capital Administration Philosophy.

The companies will proceed to be deeply aligned to UN Sustainability Improvement Targets with clear deal with SDG 6 (Clear Water and Sanitation), SDG 7 (Reasonably priced and Clear Power), SDG 11 (Sustainable Cities and Communities) and SDG 13 (Local weather Motion).

The acquisition is topic to regulatory approvals and situations.

–IANS