Adani Group acquires Ambuja and ACC to become India’s second-largest cement maker on Friday became the second-largest cement company in the country after it finalised the acquisition of Ambuja Cements and ACC Limited. is the largest player with a market valuation of over Rs 1.87 lakh crore, according to Mint,

• On Friday, the Gautam Adani-led group said that it paid $6.4 billion (over 51,000 crore) in cash to acquire Switzerland-based Holcim’s 63.1% stake in Ambuja Cements and 54.5% holding in ACC Limited.
• The Adani Family, through Endeavour Trade and Investment Ltd, a special purpose vehicle, has successfully completed the acquisition of Ambuja Cements Ltd and ACC Ltd,” the Adani Group said in a statement.

“The transaction involved the acquisition of Holcim’s stake in Ambuja and ACC along with an open offer in both entities as per SEBI regulations.” The acquisition of Ambuja Cements and ACC is the largest acquisition ever by the Adani Group, and India’s largest ever in the infrastructure and materials space.

Gautam Adani said that he is confident of becoming the largest and most efficient manufacturer of cement by 2030. “What makes cement an exciting business is a headroom for growth in India, which exceeds that of every other country well beyond 2050,” Adani said in a statement. “Our position as one of the largest renewable energy companies in the world will help us manufacture premium quality green cement well in line with the principles of a circular economy.” In May, the Adani Group had announced it had reached an agreement to buy the majority of the Indian operations of Holcim Limited.

on Friday briefly overtook Amazon’s Jeff Bezos to become the world’s second-richest person, according to the Bloomberg Billionaires Index. Adani’s net worth touched $155 billion (over Rs 12.3 lakh crore) and was trailing after Tesla founder, who has a net worth of $264 billion (over Rs 21.4 lakh crore), according to Bloomberg.

What is Gautam Adani’s investment in Ambuja Cements?

After the transaction, Adani holds 63.15 per cent stake in Ambuja Cements and 56.69 per cent in ACC – The Adani group has completed the acquisition of major cement players Ambuja Cements and ACC, becoming India’s second-largest cement player. The Adani group, through their special purpose vehicle Endeavour Trade and Investment Ltd, completed the acquisition after completing the transaction with Swiss firm Holcim and an open offer, according to a statement released on Friday.

• After the transaction, Adani holds 63.15 per cent stake in Ambuja Cements and 56.69 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements).
• The transaction involved the acquisition of Holcim’s stake in Ambuja and ACC along with an open offer in both entities as per Sebi Regulations,” it said.

The value of the Holcim stake and open offer consideration for Ambuja Cements and ACC is $6.50 billion, which makes this the largest ever acquisition by Adani, and also India’s largest ever M&A transaction in the infrastructure and materials space, it added.

Gautam Adani said that what makes cement an exciting business is the headroom for growth in India, which exceeds that of every other country well beyond 2050. In May this year, the Adani Group announced that it has clinched a deal to acquire a controlling stake in Holcim Ltd’s businesses in India. Ambuja Cements and ACC currently have a combined installed production capacity of 67.5 MTPA.

The two companies are among the strongest brands in India with immense depth of manufacturing and supply chain infrastructure, represented by their 14 integrated units, 16 grinding units, 79 ready-mix concrete plants and over 78,000 channel partners across India.

• The Board of Ambuja Cements approved an infusion of INR 20,000 cr into Ambuja by way of preferential allotment of warrants.
• This will equip Ambuja to capture the growth in the market,” it said.
• Aditya Birla group firm UltraTech leads the cement sector with an installed capacity over 100 MTPA.
• Billionaire Gautam Adani in May won the race to acquire Swiss cement major Holcim’s stake in Ambuja Cements and its subsidiary ACC for $10.5 bn (around Rs 81,361 crore), including the open offers.

Gautam Adani said the group expects aggressive expansion and plans to double the existing 70 million tonnes per year capacity within the next five years. The value for the Holcim stake and open offer consideration makes this the largest ever acquisition by Adani, and India’s largest-ever M&A transaction in the infrastructure and materials space.

In April, the world’s largest cement maker Holcim announced its exit from the country. The company through two listed entities ACC and Ambuja has 66 million tonne per annum capacity (MTPA). The group entered the market 17 years ago and the exit will put its listed arms, Ambuja and ACC, up for sale. Holcim’s exit is part of the group’s ‘strategy 2025′ that aims for sustainable solutions for the building materials sector.

The significance of cement in the overall group is already declining compared to ready mix concrete, aggregates, roofing, and green building solutions. “We will reach 30 percent of group net sales in solutions and products” the company had said last November last year while announcing its new vision.

What is the value of Holcim stake in Adani Ambuja Cements?

After the transaction, Adani holds 63.15 per cent stake in Ambuja Cements and 56.69 per cent in ACC – The Adani group has completed the acquisition of major cement players Ambuja Cements and ACC, becoming India’s second-largest cement player. The Adani group, through their special purpose vehicle Endeavour Trade and Investment Ltd, completed the acquisition after completing the transaction with Swiss firm Holcim and an open offer, according to a statement released on Friday.

After the transaction, Adani holds 63.15 per cent stake in Ambuja Cements and 56.69 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements). “The transaction involved the acquisition of Holcim’s stake in Ambuja and ACC along with an open offer in both entities as per Sebi Regulations,” it said.

The value of the Holcim stake and open offer consideration for Ambuja Cements and ACC is $6.50 billion, which makes this the largest ever acquisition by Adani, and also India’s largest ever M&A transaction in the infrastructure and materials space, it added.

1. Gautam Adani said that what makes cement an exciting business is the headroom for growth in India, which exceeds that of every other country well beyond 2050.
2. In May this year, the Adani Group announced that it has clinched a deal to acquire a controlling stake in Holcim Ltd’s businesses in India.
3. Ambuja Cements and ACC currently have a combined installed production capacity of 67.5 MTPA.

The two companies are among the strongest brands in India with immense depth of manufacturing and supply chain infrastructure, represented by their 14 integrated units, 16 grinding units, 79 ready-mix concrete plants and over 78,000 channel partners across India.

• The Board of Ambuja Cements approved an infusion of INR 20,000 cr into Ambuja by way of preferential allotment of warrants.
• This will equip Ambuja to capture the growth in the market,” it said.
• Aditya Birla group firm UltraTech leads the cement sector with an installed capacity over 100 MTPA.
• Billionaire Gautam Adani in May won the race to acquire Swiss cement major Holcim’s stake in Ambuja Cements and its subsidiary ACC for $10.5 bn (around Rs 81,361 crore), including the open offers.

Gautam Adani said the group expects aggressive expansion and plans to double the existing 70 million tonnes per year capacity within the next five years. The value for the Holcim stake and open offer consideration makes this the largest ever acquisition by Adani, and India’s largest-ever M&A transaction in the infrastructure and materials space.

In April, the world’s largest cement maker Holcim announced its exit from the country. The company through two listed entities ACC and Ambuja has 66 million tonne per annum capacity (MTPA). The group entered the market 17 years ago and the exit will put its listed arms, Ambuja and ACC, up for sale. Holcim’s exit is part of the group’s ‘strategy 2025′ that aims for sustainable solutions for the building materials sector.

The significance of cement in the overall group is already declining compared to ready mix concrete, aggregates, roofing, and green building solutions. “We will reach 30 percent of group net sales in solutions and products” the company had said last November last year while announcing its new vision.

What is the valuation of Adani’s acquisition of Ambuja?

Editor’s Synopsis –

Largest acquisition in India’s Infrastructure and Materials space valued at USD 6.50 billion Post the transaction, Adani will hold 63.15% in Ambuja Cements and 56.69% in ACC (of which 50.05% is held through Ambuja Cements) The combined market capitalization of Ambuja Cements and ACC is USD 19 billion as on date With this acquisition, Adani is now India’s second largest cement manufacturer (capacity 67.5 MTPA) Enhanced corporate governance with 100% independent directors on Audit Committee and Nomination & Remuneration Committee Two new Board committees – Corporate Responsibility Committee and Public Consumer Committee – comprising solely of independent directors, will drive ESG assurance and consumer-first approach

Mumbai, 16 September 2022: The Adani Family, through Endeavour Trade and Investment Ltd (“BidCo”), a special purpose vehicle, has successfully completed the acquisition of Ambuja Cements Ltd and ACC Ltd. The transaction involved the acquisition of Holcim’s stake in Ambuja and ACC along with an open offer in both entities as per SEBI Regulations.

The value of the Holcim stake and open offer consideration for Ambuja Cements and ACC is USD 6.50 billion, which makes this the largest ever acquisition by Adani, and also India’s largest ever M&A transaction in the infrastructure and materials space. Post the transaction, Adani will hold 63.15% in Ambuja Cements and 56.69% in ACC (of which 50.05% is held through Ambuja Cements).

“What makes cement an exciting business is the headroom for growth in India, which exceeds that of every other country well beyond 2050,” said Mr Gautam Adani, Chairman, Adani Group. “Cement is a game of economics dependent on energy costs, logistics and distribution costs, and the ability to leverage a digital platform to transform production as well as gain significant supply chain efficiencies.

1. Each one of these capabilities is a core business for us and therefore provides our cement business a set of unmatched adjacencies.
2. It is these adjacencies that eventually drive competitive economics.
3. In addition, our position as one of the largest renewable energy companies in the world will help us manufacture premium quality green cement well in line with the principles of a circular economy.

All of these dimensions put us on track to become the largest and most efficient manufacturer of cement by no later than 2030.” Currently, Ambuja Cements and ACC have a combined installed production capacity of 67.5 MTPA. The two companies are among the strongest brands in India with immense depth of manufacturing and supply chain infrastructure, represented by their 14 integrated units, 16 grinding units, 79 ready-mix concrete plants and over 78,000 channel partners across India.

• The Board of Ambuja Cements approved an infusion of INR 20,000 Cr into Ambuja by way of preferential allotment of warrants.
• This will equip Ambuja to capture the growth in the market.
• The actions will significantly accelerate value creation for all stakeholders, in line with the Adani Group’s business philosophy.

Both Ambuja Cements and ACC will benefit from synergies with the integrated Adani infrastructure platform, especially in the areas of raw material, renewable power and logistics, where Adani Portfolio companies have vast experience and deep expertise.

1. Ambuja and ACC will also benefit from Adani’s focus on ESG, Circular Economy and Capital Management Philosophy.
2. The businesses will continue to be deeply aligned to UN Sustainability Development Goals with clear focus on SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action).

In line with the Adani Portfolio’s governance philosophy, the board committees of both Ambuja Cements and ACC have been reconstituted. The Audit Committee and the Nomination & Remuneration Committee now comprise 100% independent directors. Further, two new committees have been constituted – the Corporate Responsibility Committee and the Public Consumer Committee – both comprising 100% independent directors to provide assurance to the board on ESG commitments and maximise consumer satisfaction.

Also, a Commodity Price Committee has been constituted, comprising 50% independent directors, to strengthen risk management. The transaction was financed by facilities aggregating to USD 4.50 billion availed from 14 international banks. Barclays Bank PLC, Deutsche Bank AG and Standard Chartered Bank acted as Original Mandated Lead Arrangers and Bookrunners to the transaction.

Barclays Bank PLC, DBS Bank, Deutsche Bank AG, MUFG Bank and Standard Chartered Bank acted as Mandated Lead Arranger and Bookrunners to the transaction. In addition, BNP Paribas, Citibank, Emirates NBD Bank, First Abu Dhabi Bank, ING Bank, Intesa Sanpaolo S.p.A, Mizuho Bank, Sumitomo Mitsui Banking Corporation and Qatar National Bank acted as Mandated Lead Arrangers for the transaction.

• Barclays Bank PLC and Deutsche Bank AG acted as M&A advisors to BidCo, with Standard Chartered Bank acting as the Structuring Advisor, and ICICI Securities and Deutsche Bank AG acted as merchant bankers to the open offer by BidCo for Ambuja Cements and ACC.
• Cyril Amarchand Mangaldas and Latham and Watkins LLP acted as M&A counsel to BidCo.

Cyril Amarchand Mangaldas and Latham and Watkins LLP also acted as legal counsels to BidCo for the financing with Allen & Overy LLP and Talwar Thakore and Associates acting as legal counsels to the lenders. : Adani becomes India’s second largest cement player

Who bought Holcim’s stake in Ambuja?

Adani group wins race to buy Ambuja Cements, ACC for $10.5 bn from Holcim You are here: » » The Adani family will make an open offer to buy 26 per cent in these two companies from non-promoter shareholders, as per market regulator, the Sebi’s norms Billionaire Gautam Adani on Sunday won the race to acquire Swiss cement major Holcim’s stake in Ambuja Cements and its subsidiary ACC for $10.5 bn (around Rs 81,361 crore), including the open offers.

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: Adani group wins race to buy Ambuja Cements, ACC for $10.5 bn from Holcim