Mumbai (Maharashtra) [India], May 16 (ANI): The share price of Ambuja Cements and ACC surged on Monday after Adani Group won the race to acquire a controlling stake in these companies from Switzerland-based Holcim for $10.5 billion.
Ambuja Cements share was trading 2.93 per cent higher at Rs 369.30 at the BSE at 13.46 pm. The scrip soared to a high of Rs 377.50 in the morning trade.
The share price of ACC Limited jumped 4.12 per cent to Rs 2200.75. The scrip surged to a high of Rs 2288.15 in the morning trade.
Ambuja Cements and ACC shares have surged after Adani Group agreed to buy a controlling stake in both the companies.
Adani Group has won the deal to acquire 63.19 per cent stake in Ambuja Cements Ltd and its subsidiary ACC.
Holcim has signed a binding agreement for the Adani Group to acquire its business in India, comprising its 63.11 per cent stake in Ambuja Cement, which owns a 50.05 per cent interest in ACC, as well as its 4.48 per cent direct stake in ACC. The corresponding offer share prices of Rs 385 for Ambuja Cement and Rs 2,300 for ACC translate into cash proceeds of 6.4 billion Swiss Franc (CHF) for Holcim.
"With Holcim's global leadership in sustainability, we are acquiring some of the most efficient building materials operations in India, powered with clean technologies like heat recovery systems. We recognize that Ambuja and ACC operations are energy-intensive and therefore when combined with our renewable power generation capabilities we gain a big head start in the decarbonisation journey that is a must for Indian industry," Gautam Adani, Chairman, Adani Group, said in a statement.
With this acquisition, Adani Group will become India's second-biggest cement producer. UltraTech Cement is India's largest cement producer with 120 million tonnes capacity.
The combined capacity of Ambuja Cement and ACC includes 31 cement manufacturing sites and 78 ready-mix concrete plants with 10,700 people across India.
The transaction is subject to approval by local authorities and is expected to close in the second half of 2022, according to a statement released by Ambuja Cements Limited.
Reacting to the deal, Jan Jenisch, CEO, Holcim said, "With the Adani Group, we have found a perfect owner to unleash our Indian business' next era of growth for our people and all stakeholders in a swift and efficient transaction. I am proud of Holcim's track record in the Indian market, where we significantly increased our capacity over the years while advancing our leadership in sustainability.""The construction sector has never been as attractive as it is today, with so many opportunities to build better and more with less, to improve living standards for all in a sustainable manner. In the last twelve months, we have invested CHF 5 billion in SolutionsProducts as a new growth engine for the company, while continuously pursuing bolt-ons in aggregates and ready-mix concrete. Holcim is ready to seize further opportunities, in line with our 'Strategy 2025 - Accelerating Green Growth', to become the global leader in innovative and sustainable building solutions," Jenisch said.
"I would like to thank our 10,700 Indian colleagues who have played an essential role in the development of our business over the years with their relentless dedication and expertise. I am convinced that the Adani Group is the right home for them as well as for our customers to continue to thrive in the future," he added. (ANI)