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Largest-ever acquisition by Adani in Cement biz for $10.5 bn

By IndianMandarins- 16 May 2022
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Ahmedabad (17.05.2022): In a major acquisition bid, the Adani Group, through an offshore special purpose vehicle, announced acquiring the entire stake of Switzerland-based Holcim Ltd in two of India’s leading cement companies – Ambuja Cements Ltd and ACC Ltd. Holcim, through its subsidiaries, holds 63.19 percent in Ambuja Cements and 54.53 percent in ACC of which 50.05 percent is held through Ambuja Cements.

The value for the Holcim stake and open offer consideration for Ambuja Cements and ACC is $10.5 billion, which makes this the largest ever acquisition by Adani, and India’s largest-ever M&A transaction in the infrastructure and materials space. "Our move into the cement business is yet another validation of our belief in our nation's growth story," Chairman of the Adani Group Gautam Adani said.

Not only is India expected to remain one of the world's largest demand-driven economies for several decades, India also continues to be the world's second-largest cement market and yet has less than half of the global average per capita cement consumption. In statistical comparison, China’s cement consumption is over 7 times that of India’s. “When these factors are combined with the several adjacencies of our existing businesses that include the Adani Group's ports and logistics business, energy business, and real estate business, we believe that we will be able to build a uniquely integrated and differentiated business model and set ourselves up for significant capacity expansion.” Adani said.

Holcim's global leadership in cement production and sustainability best practices brings some of the cutting-edge technologies that will allow 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 head start 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,” Adani added.

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