Adani to Acquire Holcim’s Stake in Ambuja Cements and ACC Limited

Ahmedabad : The Adani Family, through an offshore special purpose

vehicle, announced that it had entered into definitive agreements for the acquisition of

Switzerland-based Holcim Ltd’s entire stake in two of India’s leading cement companies –

Ambuja Cements Ltd and ACC Ltd.

Holcim, through its subsidiaries, holds 63.19% in Ambuja Cements and 54.53% in ACC (of

which 50.05% is held through Ambuja Cements). The value for the Holcim stake and open

offer consideration for Ambuja Cements and ACC is USD ~10.5 billion, which makes this

the largest ever acquisition by Adani, and India’s largest ever M&A transaction in the

infrastructure and materials space.

"Our move into the cement business is yet another validation of our belief in our nation's

growth story," said Mr Gautam Adani, Chairman of the Adani Group. "Not only is India

expected to remain one of the world's largest demand-driven economies for several

decades, India also continues to be the world's second largest cement market and yet has

less than half of the global average per capita cement consumption. In statistical

comparison, China’s cement consumption is over 7x that of India’s. When these factors are

combined with the several adjacencies of our existing businesses that include the Adani

Group's ports and logistics business, energy business, and real estate business, we believe

that we will be able to build a uniquely integrated and differentiated business model and set

ourselves up for significant capacity expansion.”

Mr Adani added, "Holcim's global leadership in cement production and sustainability best

practices brings to us some of the cutting-edge technologies that will allow us to accelerate

the path to greener cement production. In addition, Ambuja Cements and ACC are two of

the strongest brands recognized across India. When augmented with our renewable power

generation footprint, we gain a big headstart in the decarbonization journey that is a must

for cement production. This combination of all our capabilities makes me confident that we

will be able to establish the cleanest and most sustainable cement manufacturing processes

that will meet or exceed global benchmarks.”

“I am delighted that the Adani Group is acquiring our business in India to lead its next era of

growth,” said Mr Jan Jenisch, CEO of Holcim Limited. “Mr Gautam Adani is a highly

recognized business leader in India who shares our deep commitment to sustainability,

people and communities. I would like to thank our 10,000 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 confident that the Adani Group is the perfect home

for them as well as our customers to continue to thrive.”

With 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. The tailwinds of rapid urbanization, the growing middle class and affordable

housing together with the post-pandemic recovery in construction and other infrastructure

sectors are expected to continue driving the growth of the cement sector over the next

several decades.

Ambuja Cements and ACC currently have a combined installed production capacity of ~70

MTPA. The two companies are among the strongest brands in India with immense depth of

manufacturing and supply chain infrastructure, represented by their 23 cement plants, 14

grinding stations, 80 ready-mix concrete plants and over 50,000 channel partners across


Both Ambuja 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. This will enable higher

margins and return on capital employed for the two companies. The Companies 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 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).

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