The Adani group has completed the acquisition of Ambuja Cements Ltd and ACC Ltd. The transaction involved the acquisition of Holcim’s stake in Ambuja and ACC along with an open offer in both entities as per SEBI Regulations.
The value of the Holcim stake and open offer consideration for Ambuja Cements and ACC is USD 6.50 billion, which makes this the largest ever acquisition by Adani, and also India’s largest ever M&A transaction in the infrastructure and materials space.
Post the transaction, Adani will hold 63.15% in Ambuja Cements and 56.69% in ACC (of which 50.05% is held through Ambuja Cements).
- The largest acquisition in India’s Infrastructure and Materials space valued at USD 6.50 billion
- Post the transaction, Adani will hold 63.15% in Ambuja Cements and 56.69% in ACC (of which 50.05% is held through Ambuja Cements)
- The combined market capitalization of Ambuja Cements and ACC is USD 19 billion as on date
- With this acquisition, Adani is now India’s second largest cement manufacturer (capacity 67.5 MTPA)
- Enhanced corporate governance with 100% independent directors on Audit Committee and Nomination & Remuneration Committee
- Two new Board committees – Corporate Responsibility Committee and Public Consumer Committee – comprising solely of independent directors, will drive ESG assurance and consumer-first approach
“What makes cement an exciting business is the headroom for growth in India, which exceeds that of every other country well beyond 2050,” said Gautam Adani, Chairman, Adani Group.
“Cement is a game of economics dependent on energy costs, logistics and distribution costs, and the ability to leverage a digital platform to transform production as well as gain significant supply chain efficiencies”, Gautam Adani added.
“Each one of these capabilities is a core business for us and therefore provides our cement business a set of unmatched adjacencies”, Gautam Adani further said.
Gautam Adani added, “It is these adjacencies that eventually drive competitive economics. In addition, our position as one of the largest renewable energy companies in the world will help us manufacture premium quality green cement well in line with the principles of a circular economy. All of these dimensions put us on track to become the largest and most efficient manufacturer of cement by no later than 2030.”
Currently, Ambuja Cements and ACC have a combined installed production capacity of 67.5 MTPA. The two companies are among the strongest brands in India with immense depth of manufacturing and supply chain infrastructure.
The Board of Ambuja Cements approved an infusion of INR 20,000 Cr into Ambuja by way of preferential allotment of warrants. This will equip Ambuja to capture growth in the market. The actions will significantly accelerate value creation for all stakeholders, in line with the Adani Group’s business philosophy.
Both Ambuja Cements and ACC will benefit from synergies with the integrated Adani infrastructure platform, especially in the areas of raw material, renewable power, and logistics, where Adani Portfolio companies have vast experience and deep expertise.
Ambuja and ACC will also benefit from Adani’s focus on ESG, Circular Economy, and Capital Management Philosophy. The businesses will continue to be deeply aligned to UN Sustainability Development Goals with a clear focus on SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities), and SDG 13 (Climate Action).
In line with the Adani Portfolio’s governance philosophy, the board committees of both Ambuja Cements and ACC have been reconstituted.
The Audit Committee and the Nomination & Remuneration Committee now comprise 100%, independent directors.
Further, two new committees have been constituted – the Corporate Responsibility Committee and the Public Consumer Committee – both comprising 100% independent directors to provide assurance to the board on ESG commitments and maximize consumer satisfaction. Also, a Commodity Price Committee has been constituted, comprising 50% independent directors, to strengthen risk management.