Adani nabs major stake in Holcim’s India business for $10.5 billion

Adani plans to leverage the acquisition and extend into the space of new energy, data centers, airports, digital services, and retail

Indian multinational conglomerate, Adani Group has reportedly secured majority shareholding in Swiss giant Holcim’s Ambuja Cement-ACC business for $10.5 billion in a highly competitive bidding session that also involved large players like Aditya Birla Group parented UltraTech Cement, and JSW Cement financed by Sajjan Jindal.

The latest takeover is in line with Adani Group’s plans to step out of its core business – which includes power plants, coal mines, and operating ports – and enter new areas like airports, digital services, new energy, data centers, and retail.

Moreover, the deal will propel the company’s newest entrant into the cement industry, making Adani Cement the second-largest cement maker in India.

Speaking on the latest development, Gautam Adani, Chairman of Adani Group, emphasized on India’s potential to continue the trends of being among the largest demand-driven economies in the world for several decades and its position as the world’s second largest cement market.

Nonetheless, India showcases per capita cement consumption as lower than half of the global consumption.

According to Mr. Adani, combining the economy’s current statistics with Adani Group’s extensive capabilities will help create an all-inclusive and differentiated business model supporting the massive capacity expansion plans for the future.

For now, Adani Cement will have to place a mandatory open offer to acquire an additional 20% stake in Ambuja Cement – which facilitates 50.05% of the 54.53% stake held by Holcim in ACC. Meanwhile, Adani will also target Holcim’s 63.19% stake in Ambuja Cement.

Altogether, the valuation of the Holcim stake and open offer consideration for Ambuja Cements-ACC combine is $10.5 billion, making the deal Adani Group’s largest-ever acquisition and the largest-ever M&A transaction seen in India in the infrastructure and materials segment.

Source Credit: https://www.thehindubusinessline.com/companies/adani-acquires-holcim-stake-in-acc-ambuja-in-a-105-billion-deal/article65417553.ece