Adani signs $10.5bn deal to buy Holcim’s stakes in Ambuja Cements and ACC
The Adani Family has signed a deal worth $10.5 billion with Swiss building materials company Holcim to acquire the latter’s entire stake in Ambuja Cements and ACC Ltd.
Through its subsidiaries, Holcim has a 63.19% stake in Ambuja Cements and a stake of 54.53% in ACC Ltd., of which 50.05% is held via Ambuja Cements.
The deal will be executed by Adani Family through an offshore special purpose vehicle.
Jan Jenisch — CEO of Holcim said: “I am delighted that the Adani Group is acquiring our business in India to lead its next era of growth.
“Mr Gautam Adani is a highly recognized business leader in India who shares our deep commitment to sustainability, people and communities. I would like to thank our 10,000 Indian colleagues who have played an essential role in the development of our business over the years with their relentless dedication and expertise.
“I am confident that the Adani Group is the perfect home for them as well as our customers to continue to thrive.”
Adani Group chairman Gautam Adani with Holcim CEO Jan Jenisch. Photo courtesy of PRNewsfoto/Adani Enterprise Limited
Presently, Ambuja Cements and ACC Ltd. have a combined installed production capacity of around 70 MTPA. The two cement companies have a total of 23 cement plants, 80 ready-mix concrete plants, 14 grinding stations, and more than 50,000 channel partners across India.
Ambuja Cements and ACC Ltd are both expected to benefit from synergies with the integrated infrastructure platform of Adani, particularly in the areas of raw material, logistics, and renewable power.
Gautam Adani — Chairman of the Adani Group said: “Holcim’s global leadership in cement production and sustainability best practices brings to us some of the cutting-edge technologies that will allow us to accelerate the path to greener cement production. In addition, Ambuja Cements and ACC are two of the strongest brands recognized across India.
“When augmented with our renewable power generation footprint, we gain a big headstart in the decarbonization journey that is a must for cement production. This combination of all our capabilities makes me confident that we will be able to establish the cleanest and most sustainable cement manufacturing processes that will meet or exceed global benchmarks.”
The closing of the deal is contingent on regulatory approvals and conditions.