Adani buys Ambuja, ACC for $10.5 billion

Deal will make the Adanis the second largest cement player in India, after the Aditya Birla Group’s UltraTech Cement

The Adani family, through an offshore special purpose vehicle (SPV), said it had entered into definitive agreements for the acquisition of Switzerland-based Holcim Limited’s entire stake in Ambuja Cements Limited and ACC Limited, two of India’s leading cement companies.

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

An open offer has been made in accordance with regulatory norms.

“The value for the Holcim stake and open offer consideration for Ambuja Cements and ACC is USD 10.5 billion, which makes this the largest ever acquisition by Adani, and India’s largest ever M&A transaction in the infrastructure and materials space,” the Adanis said in a statement.

This deal makes the Adanis the second largest cement player, after UltraTech Cement of the Aditya Birla Group. 

“Our move into the cement business is yet another validation of our belief in our nation’s growth story,” Gautam Adani, chairman of the Adani Group, said.

“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,” he said.