On Sunday, Adani Group, owned by Gautam Adani, announced a deal to acquire Holcim's businesses in India for $10.5 billion. The group has 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, according to the group.
The Chairman, Adani Group, said: "Our belief in the story of India is unshakeable. Combining Holcim's cement assets in India with our green energy and logistics will make us the world's greenest cement company. Jan Jenisch has been great to work with. We welcome the AmbujaCementACL ACCLimited teams. Holcim holds 63.19% in Ambuja Cements and 54.53% in ACC, of which 50.05% is held through Ambuja Cements. The value for Holcim stake and open offer consideration for Ambuja Cements and ACC is USD 10.5 billion.
Adani said in a statement that our move into the cement business is another validation of our belief in our nation's growth story. This deal would make Gautam Adani'sAdani's conglomerate the second-largest player in the domestic cement sector. Adani Group, which is already a ports-to-energy conglomerate, will enter the cement sector with this deal.
India is expected to remain one of the world's largest demand-driven economies for several decades, but India is also the world's second largest cement market and has less than half of the global average per capita cement consumption. In a statistical comparison, China s cement consumption is over 7 x that of India. When these factors are combined with the several adjacencies of our existing businesses that include the Adani GroupAdani Group's ports and logistics business, energy business, and real estate business, we believe we will be able to build a uniquely integrated and differentiated business model and set ourselves up for significant capacity expansion, he added.
I am delighted that the Adani GroupAdani Group is acquiring our business in India to lead the next era of growth, said Jan Jenisch, CEO of Holcim Limited. Adani Group has diversified its portfolio beyond the core business of operations, power plants and coal mines into airports, data centres and clean energy in the last couple of years.
Mr. Gautam Adani is a well-known 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 important role in the development of our business over the years with their dedication and expertise. Jenisch said that the Adani GroupAdani Group is the perfect home for them as well as our customers to continue to thrive.
Last year, Asia's richest man Gautam Adani'sAdani's group set up two cement subsidiaries - Adani Cement Ltd. and Adani Cementation Ltd., intending to set up two cement units in Gujarat s Dahej and Maharashtra s Raigarh.