Adani Group to buy Holcim’s Business in India for USD 10.5 Billion

BANKING AND ECONOMY

In a $10.5 billion deal, Adani Group acquired a controlling stake in Holcim AG's cement businesses - the world's largest cement maker - in India to become the second-biggest cement producer in the country. This would be the largest-ever acquisition by Adani Group. This is India's largest-ever M&A transaction in the infrastructure and materials space.

It acquired 63.19% of Ambuja Cements Ltd and its subsidiary ACC in fierce bidding with local companies. Holcim, through its subsidiaries, holds 63.19% in Ambuja Cements and 54.53% in ACC. The capacity of the company is 66 million tonnes per annum (MTPA). Ambuja Cements has a cement capacity of 31 million tonnes with 6 integrated cement manufacturing plants and 8 cement grinding units across the country.

The group had last year set up two cement subsidiaries - Adani Cementation Ltd which was planning to set up two cement units at Dahej in Gujarat and Raigarh in Maharashtra; and Adani Cement Ltd.

In 2015, Holcim merged with France's Lafarge to create LafargeHolcim. In June 2016, Ambuja bought Holcim India's 24% stake in ACC, which resulted in the latter becoming Ambuja's subsidiary with a 50.05% stake.

 

   Important points for the exam:

  • In a $10.5 billion deal, Adani Group acquired a controlling stake in Holcim AG's cement businesses - the world's largest cement maker - in India. It is the largest-ever acquisition by Adani Group.
  • With this deal, the Adani Group will be the second-biggest cement producer in the country. 
  • It acquired 63.19% of Ambuja Cements Ltd and its subsidiary ACC in fierce bidding with local companies. 
  • In 2015, Holcim merged with France's Lafarge to create LafargeHolcim. In June 2016, Ambuja bought Holcim India's 24% stake in ACC, which resulted in the latter becoming Ambuja's subsidiary with a 50.05% stake.

   Facts to know:

  • Asia’s richest person: Mr.Gautam Adani - the 5th richest person in the world.
  • Adani Group was established in 1988.
  • Headquarters of Adani Group: Ahmedabad.
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