Adani Group to buy Holcim India for $10.5 billion

Adani plans to spend $10 billion on Holcim’s India assets and $3-3.5 billion on public stock purchases. Ambuja Cements owned 63.19 percent of Holcim, while ACC owned 54.53 percent. Adani will now be India’s second-largest cement manufacturer, with a manufacturing capacity of 70 million tonnes per year.

The Adani Group signed definitive agreements on Sunday to buy Swiss cement giant Holcim’s share in Ambuja Cements and its subsidiary account for $10.5 billion, including open offers.

According to rumors, the Adani Group may spend $3-3.5 billion to purchase shares from public owners.

According to a stock exchange statement, the Gautam Adani-led company has offered Rs 385 per share for Ambuja Cements and Rs 2,300 per share for ACC.

Ambuja Cements owned 63.19 percent of Holcim, while ACC owned 54.53 percent. The Adani Group’s entrance into the cement market, according to Gautam Adani, Chairman, is another proof of the company’s conviction in the nation’s progress.

Adani will now be India’s second-largest cement producer, with a capacity of 70 million tonnes of cement produced yearly. In a statement, Adani said the sale is worth $10.5 billion, calling it “India’s largest-ever M&A transaction in the infrastructure and materials market.”

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“Holcim’s global leadership in cement production and sustainability best practices provides us some of the cutting-edge technology that will enable us to speed the journey to greener cement manufacturing,” he continued.

Holcim Limited CEO Jan Jenisch expressed his joy at Adani Group’s acquisition of the company.

India’s cement usage is only 242 kg per capita, compared to the global average of 525 kg per capita. As a result, India’s cement sector has a lot of room for expansion. According to Adani Group, the cement business will assist the company’s other infrastructure sectors, such as ports, logistics, energy, and real estate, in order to establish a “uniquely integrated and differentiated” business model.

With 23 cement facilities, 14 ground stations, 80 ready-mix concrete plants, and over 50,000 channel partners across India, ACC and Ambuja Cement have a combined production capacity of 70 MTPA. Synergies with the comprehensive Adani infrastructure platform will benefit Ambuja and ACC, particularly in the areas of raw materials, renewable energy, and logistics.

Holcim possesses 63.19 percent of Ambuja Cements and 54.53 percent of ACC through its auxiliaries (of which 50.05 percent is held through Ambuja Cements).

Holcim, the world’s largest cement manufacturer, announced its exit from the country last month following a long struggle.

The combined installed production capacity of Ambuja Cements and ACC is presently 70 million tonnes per year.

The two enterprises have a combined total of 23 cement facilities, 14 ground stations, 80 ready-mix concrete plants, and over 50,000 channel partners throughout India.

Adani Group and Holcim also claimed in a joint statement: “For both firms, this will result in improved profits and returns on capital used. Adani’s focus on ESG, Circular Economy and Capital Management Philosophy will also benefit the companies. 

SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities), and SDG 13 (Climate Action) will all be prioritized by the enterprises.”