Adani Group hits masterstroke!

The group confirmed the deal to acquire Holcim’s stake in Ambuja Cements and ACC Ltd for $10.5 billion or Rs 81,361 crore. Holcim owns 63.19 per cent in Ambuja Cements and 4.48 per cent in ACC Limited.

Adani Group, founded by Gautam Adani in 1988, operates in various business segments such as port management, electric power generation, transmission, renewable energy, mining, food processing, and infrastructure.  

The group confirmed the deal to acquire Holcim’s stake in Ambuja Cements and ACC Ltd for $10.5 billion or Rs 81,361 crore. With this deal, the Indian conglomerate Adani is going to make its grand entry into the cement industry. The acquisition will make Adani Group, the second-largest cement company in India, following Aditya Birla Group. As of now, Holcim owns 63.19 per cent in Ambuja Cements and 4.48 per cent in ACC Limited.   

Holcim, a flagship division of Holcim Group, is a Swiss-based building material and cement company. The reason behind this mega deal is Holcim’s ‘Strategy 2025’. The main objective of this strategy is to adopt sustainable alternatives or solutions for the building-related materials sector as well as move towards a greener portfolio. The company wishes to reduce its revenue from cement and raise its share in the sector of green products. To meet this objective, the company has started reducing its operations in Asia, Russia, and Brazil.   

On the other hand, many people also think that the company was planning to exit India due to intense scrutiny of its operations in India by the Competition Commission of India (CCI) after the commission started its second investigation against the company in December 2020.  

After the announcement, Adani Group Chairman Gautam Adani tweeted, "Our belief in the India story is unshakeable. Combining Holcim's cement assets in India with our green energy and logistics will make us the world's greenest cement company. We welcome the Ambuja Cement Ltd and ACC Ltd teams."   

As a result, the shares of Ambuja Cements Ltd and ACC Ltd surged 2.31 per cent & 3.75 per cent, respectively. Heavy buying was seen in Adani Group’s shares as all were trading upwards with a good margin. At the time of market closing, Adani Green was trading at Rs 2,301.30, up by 5.97 per cent. Adani Power was at its upper circuit while the shares of Adani Enterprises, Adani Wilmar, and Adani Ports & Special Economic Zone were up by 2.84 per cent, 2.71 per cent & 1.56 per cent, respectively. Keep a close eye on these scrips for the upcoming sessions.