Big deal in the cement space: Adani Group buys out Holcim cement assets in India!

Interestingly, the deal is at a premium to Friday’s closing price. 

During the weekend while many of us were busy partying or maybe completing some unfinished household work, Adani Group was busy striking a deal!  

Holcim has signed a binding agreement for Adani Group to acquire its business in India, comprising a 63.11 per cent stake in Ambuja Cements, which owns a 50.05 per cent interest in ACC along with a 4.48 per cent direct stake in ACC. The corresponding offer share prices of Rs 385 for Ambuja Cements and Rs 2,300 for ACC translate into cash proceeds of CHF 6.4 billion for Holcim.

Adani Group is a leading and highly-recognised company in India with a portfolio of world-class businesses, ranging from infrastructure to energy. Since 2005 or say, from the time it entered India, Holcim has established a track record of sustainable value creation with strategic investments, ranging from new best-in-class plants to green technologies such as heat recovery systems.  

Ambuja Cements and ACC are among the most iconic building material brands in India with a track record of leadership in sustainability and innovation. Their combined footprint includes 31 cement manufacturing sites and 78 ready-mix concrete plants with 10,700 people across India.  

The transaction is subject to approval by local authorities and is expected to close in the second half of 2022.  

On Friday, the stock of ACC settled at Rs 2,113.30. Meanwhile, it has delivered gains of Rs 12.25 per cent in the last one year. Besides, the stock of Ambuja Cements settled at Rs 359.10 while in the last one year, it has advanced nearly 16.20 per cent. 

Interestingly, the deal is at a premium to Friday’s closing price.