Gautam Adani’s conglomerate is in advanced talks to acquire Holcim Ltd.’s businesses in India, according to people familiar with the matter, Bloomberg reported.
The billionaire’s Adani Group could sign an agreement to acquire a controlling stake in Ambuja Cements Ltd. from Holcim as soon as in the coming days, the people said, asking not to be identified as the information is private. Other bidders, including JSW Group, remain interested in the assets, the report said.
Holcim, which controls 63.1 percent of the company, has been considering the sale of its stake, Ambuja’s subsidiaries include ACC Ltd., which is also publicly traded.
No final decisions have been made and talks could still fall apart, the people said.
Holcim has been divesting non-core assets in order to reduce debt and diversify through acquisitions. It sold its Brazilian unit for $1 billion in September and plans to sell its Zimbabwe business as well.
In 2006, Holcim purchased a 14.8 percent share in Ambuja Cement for Rs. 2,100 crore, bringing Holcim's total ownership in the company to 34.8 percent. Holcim paid Rs. 5,497 crore for an additional 24 percent stake in the company in 2007.
In November 2015, Holcim increased its shareholding in Ambuja Cement Ltd. to 63.11% post the acquisition of an additional 3.91 crore shares.
Ambuja cement reported revenue from operations, During October-December 2021, jumped 2.31 per cent to Rs. 7,625.28 crore, compared with Rs. 7,452.87 crore in the year-ago period.
Its total expenses stood at Rs. 6,865.61 crore in the December 2021 quarter, a 6.7 per cent jump as compared with Rs. 6,434.43 crore a year ago.
Ambuja has a cement capacity of 31 million metric tonnes, six integrated manufacturing plants, and eight cement grinding units in India, its website shows.
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.