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

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

Holcim, by 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 by 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 one more validation of our perception in our nation’s progress story,” stated 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 current companies that embody the Adani Group’s ports and logistics enterprise, power enterprise, and actual property enterprise, we imagine that we will construct a uniquely built-in and differentiated enterprise mannequin and set ourselves up for important capability enlargement.”

Adani added: “Holcim’s international management in cement manufacturing and sustainability greatest practices brings to us a number of the cutting-edge applied sciences that may enable 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 era footprint, we acquire an enormous headstart within the decarbonisation journey that may be a should for cement manufacturing. This mixture of all our capabilities makes me assured that we will set up the cleanest and most sustainable cement manufacturing processes that may meet or exceed international benchmarks.”

“I’m delighted that the Adani Group is buying our enterprise in India to steer its subsequent period of progress,” Holcim Ltd CEO Jan Jenisch stated. “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 an important function within the improvement of our enterprise through the years with their relentless dedication and experience. I’m assured that the Adani Group is the right dwelling for them in addition to our prospects 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 may be important potential for the expansion of the cement sector in India. The tailwinds of speedy urbanisation, the rising center class and reasonably priced housing along with the post-pandemic restoration in development 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 presently 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 vegetation, 14 grinding stations, 80 ready-mix concrete vegetation 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 greater margins and return on capital employed for the 2 corporations. The businesses may also profit from Adani’s deal with ESG, Round Financial system and Capital Administration Philosophy.

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

The acquisition is topic to regulatory approvals and circumstances.

–IANS