Adani group wins race to buy Ambuja Cements, ACC for $10.5 bn from Holcim

Ambuja Cement and ACC Cement from Holcium Group was bought by Adani Group For 82 thousand crores. Adani Group is preparing to raise overseas debt of $ 4.5 billion i.e. about 33 thousand crore rupees for the funding of this deal.

According to a report published in the Economic Times, the Adani Group (Adani Group) is engaged in raising foreign debt of $ 4.5 billion (about 33 thousand crores). They are acquiring big companies one after the other and expanding their business empire very fast. They are taking loans on a large scale to make deals worth thousands of crores.

Ambuja Cements limited, formerly known as Gujarat Ambuja Cement Limited is a major Indian cement producing company. The company has entered into a strategic partnership with Holcim, the second-largest cement manufacturer in the world from 2006.

Adani Group has agreed to buy holcium’s Indian assets, ie, the two publicly listed cement companies Ambuja Cements and ACC in a $10.5 billion deal. Swiss cement maker Holicum Ltd has decided to exit Indian market after doing business for 17 years in india.

Why did holcium chose to exit

The Holcim group is a swiss multinational company that manufactures bulding materials for ex cement, ready mix concrete, aggregates. Though Holcim supports the plan to move towards its goal of increasing greener share in revenue by 2025.
Holcium has been on spree to buy greener assets in Europe and the united states to augment its solution and produts revenue as a new growth engine foe the company. Holicim exit will also be India biggest outflow of foreign direct investment.

Adani Group has taken 2.2 lakh crore loan already

The group is also taking loans on a large scale for the development of its current business. The Adani Group is already under heavy debt burden. According to reports, Adani Group has a total debt of ₹2.22 lakh crore at the end of March 2022. It was ₹1.57 lakh crore in March 2021. It has registered a jump of 42 per cent on an annual basis.

What is the size and deal value?

• India’s largest-ever merger and acquisition transaction in the infrastructure and materials space. The deal is the biggest-ever acquisition by the Adani family.
• The Adani group has agreed to acquire Holcim’s India’s assets for CHF 6.4 billion or nearly $10.5 billion.
• Adani has agreed to buy the shares in Ambuja Cements for ₹385 per share and shares in ACC for ₹2300 a piece, according to the statement. Thus the $10.5 billion deal is at a 4 per cent premium (for both ACC and Ambuja) from last close in April 13, as said in the news.
• The conglomerate has agreed to acquire 63.19% stake in Ambuja Cements and 54.53% stake in ACC.

India’s cement consumption at Just 242 kg per capita, as compared to the global average of 525 kg per capita, there is significant potential for the growth of the cement sector in India. India has a high quantity and quality of limestone deposits throughout the country, the cement industry promise huge potential for growth.