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 billion (around ₹81,361 crore), including the open offers.
Shares of Adani Enterprises were up by 2.91% at ₹2,104/share from its previous close on the BSE.
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. "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 group.
With this, Adani now becomes India’s second-largest cement manufacturer with a capacity of about 70 Metric Tonnes Per Annum (MTPA), the statement added.
Holcim owns 63.19 per cent in Ambuja Cement and 4.48 per cent in ACC. Ambuja Cement, in turn, owns 50.05 per cent in ACC.
The open offer price per share for Ambuja Cements will be ₹385 while that of ACC will be at ₹2,300, according to a stock exchange filing.
Holcim purchased a 14.8 per cent share in Ambuja Cement for ₹2,100 crore in 2006, bringing Holcim's total ownership in the company to 34.8 per cent. In 2007, Holcim paid Rs. 5,497 crore for an additional 24 per cent share in the company.
In November 2015, Holcim has increased its shareholding in Ambuja Cement Ltd. to 63.11% post the acquisition of additional 3.91 crore shares.
Adani Group’s flagship firm, Adani Enterprises Ltd., has two cement subsidiaries. According to a compliance report in November, Adani Cementation Ltd. is planning to build an integrated facility in Gujarat. The group established Adani Cement Ltd. in June 2021.
Adani has in the last couple of years diversified beyond the core business of operating ports, power plants, and coal mines into airports, data centres, and clean energy.