Adani acquires controlling stake in Holcim’s India business in $10.5 billion deal

 Adani acquires controlling stake in Holcim’s India business in $10.5 billion deal

The Adani Group logo will appear in front of one of its buildings outside Ahmedabad, India, April 13, 2021. REUTERS/Amit Dave/File Photo

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May 15 (Reuters) – India’s Adani Group has acquired a controlling stake in India’s Holcim AG (HOLN.S) cement businesses in a $ 10.5 billion deal to become the country’s second -largest cement producer, said the Adani Group in a statement on Sunday.

Asia’s richest man Gautam Adani’s conglomerate acquired 63.19% of Ambuja Cements Ltd. (ABUJ.NS) and it is the subsidiary ACC (ACC.NS) in the fierce bidding of local companies.

Ambuja and ACC have a combined production capacity of at least 70 million tons of cement per year, second only to UltraTech Cement (ULTC.NS) with 120 million tons of capacity.

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The Adani family, through an offshore special purpose vehicle, has entered into definitive agreements for the acquisition of the entire stake in Switzerland-based Holcim Ltd in Ambuja and ACC, the Adani Group said in a statement.

Holcim (HOLN.S) said in a statement that it has signed a binding agreement for Adani Group to acquire Holcim’s business in India, which comprises its stake in Ambuja Cement, which owns 50.05% interest in ACC, as well as 4.48% directly thereof. stake in the ACC. Holcim will receive nearly $ 6.4 billion for the stakes.

Adani Group says it will acquire multiple shares through an open offer.

The transaction is expected to close in the second half of 2022, Holcim said.

Adani Group’s parent company Adani Enterprises Ltd. has two cement subsidiaries. Adani Cementation Ltd. plans to build an integrated facility in western Gujarat and Maharastra states, according to an Adani group official.

The divestment is Holcim’s latest move because it seeks to reduce its reliance on cement production, an industrial process that produces high levels of carbon and therefore prevents many investors from being environmentally conscious.

($ 1 = 1,0017 Swiss francs)

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Reporting by Mrinmay Dey in Bengaluru, Rajendra Jadhav, Rupam Jain in Mumbai Editing by Peter Graff

Our Standards: The Thomson Reuters Trust Principles.

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