Adani to Become India's Second-Biggest Cement Maker With $10.5 Billion Holcim Deal
Holcim said in a statement it had signed a binding agreement for the Adani Group to acquire Holcim's business in India.
India's Adani Group acquired a controlling stake in Holcim AG's cement businesses in India in a $10.5 billion deal to become the second-biggest cement producer in the country, Adani Group said in a statement on Sunday.
Asia's richest person Gautam Adani's conglomerate acquired 63.19 percent of Ambuja Cements Ltd and its subsidiary ACC in fierce bidding with local companies.
The divestment is the latest move by Holcim as it seeks to reduce its reliance on cement production.
This industrial process produces high levels of carbon emissions and has deterred many environmentally-conscious investors.
In recent years the Switzerland-based company accelerated its efforts to get out of carbon-intensive cement making.
Ambuja and ACC have a combined capacity to produce at least 70 million tonnes of cement annually, second to UltraTech Cement, with 120 million tonnes capacity.
Holcim said in a statement it had signed a binding agreement for the Adani Group to acquire Holcim's business in India, comprising its stake in Ambuja Cement, which owns a 50.05 percent interest in ACC, as well as its 4.48 percent direct stake in ACC.
Holcim would receive nearly $6.4 billion for the stakes. Ambuja Cement has 14 cement plants, employing 4,700 people.
ACC has 17 cement plants and 78 ready mix concrete factories and employs 6,000 people. Since then, the company has been selling fringe parts of its business as it seeks to concentrate on North America and Europe.
Last year the company sold its Brazilian operation for $1.025 billion, and it also exited the Philippines and Indonesia.