Gautam Adani-owned Adani Group announced a deal to acquire Holcim's businesses in India for $10.5 billion. The group revealed that it had entered into definitive agreements for the acquisition of Switzerland-based Holcim Ltd’s entire stake in two of India’s leading cement companies – Ambuja Cements Ltd and ACC Ltd.
Holcim, through its subsidiaries, holds 63.19% in Ambuja Cements and 54.53% in ACC (of which 50.05% is held through Ambuja Cements). The value for the Holcim stake and open offer consideration for Ambuja Cements and ACC is $10.5 billion.
Adani, in a statement, said, “Our move into the cement business is yet another validation of our belief in our nation's growth story.” This deal would make Gautam Adani's conglomerate the second-largest player in the domestic cement sector. Adani Group, which is already a ports-to-energy conglomerate, with this deal will also enter the cement sector.
Jan Jenisch, CEO of Holcim Limited, said, “I am delighted that the Adani Group is acquiring our business in India to lead its next era of growth.”
Adani Group, in the last couple of years, has diversified its portfolio beyond the core business of operating ports, power plants and coal mines into airports, data centres and clean energy. Last year, Asia's richest man Gautam Adani's group has also set up two cement subsidiaries - Adani Cement Ltd. and Adani Cementation Ltd., intending to set up two cement units at Gujarat’s Dahej and Maharashtra’s Raigarh.
