Ambuja Cement and ACC rose up to 8% on the BSE in the intraday session on Monday after the Adani Group announced the acquisition of Swiss cement firm Holcim’s stake in all of its Indian operational businesses for $10.5 billion (about Rs 81,361 crore), including open offers.
The Adani family announced that it has entered into formal agreements to acquire Holcim Ltd’s entire stake in two of India’s biggest cement businesses, Ambuja Cements and ACC, through an offshore special-purpose vehicle.
Holcim owns 63.19% of Ambuja Cements and 54.53% of ACC through subsidiaries (of which 50.05 per cent is held through Ambuja Cements).
According to Adani Group, the enterprises will benefit from Adani’s focus on ESG, Circular Economy, and Capital Management Philosophy.
ACC shares climbed 8% to Rs 2,288, while Ambuja Cements rose 5% to Rs 377 on the BSE, compared to a 1% rise in the Sensex.
Gautam Adani-led Adani Group announced an open offer to purchase up to 48.96 million equity shares representing 26% of ACC’s total equity capital at a price of Rs 2,300 per share. It will purchase 516 million shares, or a 26% stake in Ambuja Cements, for Rs 385 a share.
“As the deal closes, ACC and Ambuja Cements become direct, and most importantly, identifiable individual promoter-controlled entities and Adani emerges as the second-largest player in the Indian cement industry, this deal will potentially change the fortune of the sector for a betterment!,” said analysts at Philllip Capital.
With its masterstroke of acquiring Ambuja Cements and ACC from Holcim, Adani Group has suddenly emerged as the country’s second-largest cement maker. According to the brokerages, it has now reached a capacity of 70 million tonnes per annum, second only to UltraTech Cement.