Adani to acquire Holcim's Stake in Ambuja Cements & ACC Limited

The Adani Group, through an offshore special purpose vehicle, announced that it has entered into definitive agreements for the acquisition of Switzerland-based Holcim Ltd's entire stake in Indian cement companies – Ambuja Cements Ltd and ACC Ltd.

The value for the Holcim stake and open offer consideration for Ambuja Cements and ACC is $ 10.5 billion.

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

"Our move into the cement business is yet another validation of our belief in our nation's growth story," said Gautam Adani, Chairman of the Adani Group. "Not only is India expected to remain one of the world's largest demand-driven economies for several decades, India also continues to be the world's second largest cement market and yet has less than half of the global average per capita cement consumption. In statistical comparison, China's cement consumption is over 7x that of India's. When these factors are combined with the several adjacencies of our existing businesses that include the Adani Group's ports and logistics business, energy business, and real estate business, we believe that we will be able to build a uniquely integrated and differentiated business model and set ourselves up for significant capacity expansion."

Adani added, "Holcim's global leadership in cement production and sustainability best practices brings to us some of the cutting-edge technologies that will allow us to accelerate the path to greener cement production. In addition, Ambuja Cements and ACC are two of the strongest brands recognised across India. When augmented with our renewable power generation footprint, we gain a big head-start in the decarbonisation journey that is a must for cement production. This combination of all our capabilities makes me confident that we will be able to establish the cleanest and most sustainable cement manufacturing processes that will meet or exceed global benchmarks."

"I am delighted that the Adani Group is acquiring our business in India to lead its next era of growth," said Jan Jenisch, CEO of Holcim Limited. "Gautam Adani is a highly recognised business leader in India who shares our deep commitment to sustainability, people and communities. I would like to thank our 10,000 Indian colleagues who have played an essential role in the development of our business over the years with their relentless dedication and expertise. I am confident that the Adani Group is the perfect home for them as well as our customers to continue to thrive." 

With India's cement consumption at just 242 kg per capita, as compared to the global average of 525 kg per capita, there is significant potential for the growth of the cement sector in India, the company said.

Both Ambuja 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 experience and expertise, as per it.

The acquisition is subject to regulatory approvals and conditions.

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