Ahmedabad: Adani Group to buy Holcim’s stake in Ambuja Cements and ACC Ltd.

Largest ever acquisition in India’s infra and materials space, valued at US$10.5 billion

Ahmedabad. The Adani family has announced a definitive agreement for the acquisition of Switzerland-based Holcim Ltd’s entire stake in two of India’s leading cement companies – Ambuja Cements Ltd and ACC Ltd, through an offshore special purpose vehicle. Through its subsidiaries, Holcim holds 63.19% in Ambuja Cements and 54.53% in ACC (of which 50.05% is through Ambuja Cements). The Holcim stake and open offer idea for Ambuja Cements and ACC is valued at US$10.5 billion, making it the largest acquisition by Adani to date, and India’s largest ever M&M in infrastructure and materials. A transaction may be called.

Gautam Adani, Chairman, Adani Group said, “Our foray into the cement business further cements our belief in the growth story of our country. Over the decades, India is not only expected to remain one of the world’s largest demand-driven economies for many years, but India also continues to be the world’s second largest cement market and has yet to exceed the global average per capita cement consumption. In less than half of the cases. In statistical comparison, China’s cement consumption is 7 times higher than that of India. When these factors are combined with multiple units of our existing businesses, including the Adani Group’s ports and logistics business, energy business and real estate business, we are confident that we can create a uniquely integrated and differentiated business model and Will be able to set himself up for a significant capacity expansion.

Adani added, “Holcim’s global leadership in cement production and sustainability best practices brings to us some cutting edge technologies that will allow us to accelerate the path of greener cement production. In addition, Ambuja Cements and ACC across India , are two of the strongest recognized brands. As the size of our renewable power generation footprint grows, we achieve a major milestone in the decarbonization journey which is essential for cement production. This combination of all our capabilities assures me that We will be able to establish the cleanest and most sustainable cement manufacturing processes that meet or exceed global benchmarks.

Jan Janish, CEO, Holcim Limited, 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, with their relentless dedication and expertise, have played an essential role in the growth of our business over the years. I am confident that the Adani Group is a perfect home for them as well as our customers, so that they can continue to thrive.

Cement consumption in India is only 242 kg per capita, as compared to the global average of 525 kg per capita, India has significant potential for cement sector growth. Rapid urbanization, a growing middle class and affordable housing, as well as construction and other infrastructure sectors, are expected to drive cement sector growth over the next several decades, compensating for the pandemic.

Ambuja Cements and ACC currently have a combined installed production capacity of 70 MTPA. Both the companies are amongst the strongest brands in India with a depth of infrastructure in both manufacturing and supply chain, supported by their 23 cement plants, 14 grinding stations, 80 ready mix concrete plants and over 50,000 channel partners across India. represent.

Both Ambuja and ACC will benefit from the synergy with the integrated Adani Infrastructure Platform, especially in the areas of raw materials, renewable energy and logistics, where the Adani portfolio companies have vast experience and deep expertise. This will result in higher margins and return on capital employed for both the companies. Companies will also benefit from Adani’s focus on ESG, circular economy and capital management philosophy. With a clear focus on SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action) businesses are in depth with the United Nations Sustainable Development Goals Will continue to be linked.