MUMBAI: Adani’s family, through Endeavor Trade and Investment Ltd, a special destination vehicle, has successfully completed the acquisition of Ambuja Cements Ltd and ACC Ltd., which involves the acquisition of Holcim shares in Ambuja and ACC along with open offers in the two second entities according to Sebi regulations, Adani Group said in a statement on Friday.
The Holcim Stake and Open value offers consideration for Ambuja and ACC cement is $ 6.5 billion, which makes this the biggest acquisition ever by Adani, and also the largest M&A transaction in India in the infrastructure and material space, the statement said.
After the transaction, Adani will accommodate 63.15% in Ambuja cement and 56.69% at ACC (where 50.05% is held through Ambuja cement).
The Ambuja Cement Council has agreed to infusion RS20,000 Crore to Ambuja through the quarrel of warrants’ preferences, the statement added, to help Ambuja capture growth in the market.
what makes cement an attractive business is the head space for growth in India, which exceeds each other country more than 2050,” said Gautam Adani, Chairperson, Adani Group.
Cement is an economic game that depends on the cost of energy, logistics and distribution costs, and the ability to utilize digital platforms to change production and obtain significant supply chain efficiency. Each of these capabilities is a core business for us and therefore providing our cement business a series of unmatched closeness. It is this wealth that ultimately encourages a competitive economy. In addition, our position as one of the largest renewable energy companies in the world will help us produce premium quality green cement in accordance with circular economic principles, “he said.
All of these dimensions put Adani Group on the path to become the largest and most efficient cement producer no later than 2030, he added.At present, Ambuja and ACC cement has a combined production capacity of 67.5 MTPA.
This transaction is funded by facilities collected to $ 4.5 billion available from 14 international banks. Barclays Bank PLC and Deutsche Bank AG act as M&A advisers for the Adani family, with Standard Chartered Bank acting as an advisor to arrangement