Gautam Adani will buy Holcim’s cement subsidiaries Ambuja Cements Ltd. and ACC Ltd. The Adani Family has signed definitive agreements for the acquisition of Holcim Ltd’s complete stake in these two cement firms through an offshore special purpose entity. The combined value of the Holcim stake and open offer consideration for Ambuja Cements and ACC amounts to roughly $10.5 billion, making this the Adani group’s largest acquisition to date.
The acquisition translates into Rs 385 per share for Ambuja Cements and Rs 2,300/share for ACC. The Ambuja Cement stock closed Friday at Rs 359.10 while ACC ended at Rs 2113.30 apiece. That parent Holcim held 63.19% in Ambuja Cements and 54.53% in ACC (of which 50.05% is held through Ambuja Cements).The Adani Group and the JSW Group were said to be the bidders for the cement companies with some reports suggesting late interest by Ultra Tech Cement.
“With Holcim’s global leadership in sustainability, we are acquiring some of the most efficient building materials operations in India, powered with clean technologies like heat recovery systems”, Gautam Adani said. Holcim has been selling non-core assets to reduce debt. It recently divested its Brazilian unit for $1 billion and is also planning to sell its business in Zimbabwe, added the Bloomberg report.
