Adani forays into cement sector with $10-bn deal

New Delhi, May 15

Asia’s richest man Gautam Adani’s group on Sunday said it had clinched a deal to acquire a controlling stake in Holcim Limited’s businesses in India for $10.5 billion, marking the ports-to-energy conglomerate’s entry into the cement sector.

The Adani Group will acquire 63.1 per cent of Ambuja Cements Limited along with related assets. Ambuja’s local subsidiaries include ACC Limited, which is also publicly traded.

Stake in Ambuja, ACC

• The Adani Group has clinched the deal for $10.5 billion, marking the ports-to-energy conglomerate’s entry into the cement sector
• Will acquire 63.1% of Ambuja Cements Limited along with related assets and 54.53% of ACC Ltd

“The Adani Family, through an offshore special purpose vehicle, announced that it had entered into definitive agreements for the acquisition of Switzerland-based Holcim Limited’s entire stake in two of India’s leading cement companies—Ambuja Cements Limited and ACC Limited,” the group said in a statement.

Holcim, through its subsidiaries, holds 63.19 per cent in Ambuja Cements and 54.53 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements).

“The value for the Holcim stake and open offer consideration for Ambuja Cements and ACC is $10.5 billion, which makes this the largest-ever acquisition by Adani, and India’s largest-ever M&A transaction in the infrastructure and materials space,” the statement said.