In India, Holcim Limited, the parent company of Ambuja and ACC Cement, is winding up its cement business. Adani Group and JSW Group are both major contenders in the race to buy the Indian business of this giant foreign company. Where on the one hand, according to a Bloomberg report, the Adani Group, the group of Asia’s billionaire businessman Gautam Adani, is in talks to buy Ambuja from Holcim and has reached the deal. At the same time, the other Financial Times reported on Tuesday that Cement Group JSW Group from Bhartiya Metals will bid for $ 7 billion for Ambuja Cements Limited and ACC Limited, the Indian subsidiaries of Holcim AG.
What did JSW Group say?
JSW Group chairman Sajjan Jindal told the newspaper that it will acquire 63% stake in Ambuja Cements. The company will offer $4.5 billion in its equity and $2.5 billion from undisclosed private equity partners. The move comes as Switzerland-based Holcim seeks to diversify its core business of cement and aggregates to focus more on construction technology. JSW Group, Holcim, Ambuja Cements and ACC did not comment on this.
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Adani in group race
It is also reported that the Adani Group is at the forefront of the buyer list with $13.5 billion for this deal. As per some sources, “Adani is the frontrunner to take over Ambuja and ACC.” Adani Group’s promoter entities may spend up to $11 billion to buy Holcim’s stake in Ambuja Cements and ACC. Since the acquisition would involve a change in ownership, separate open offers would be mandatory for the public shareholders of both the companies. Sources said the Adani Group will invest an additional $2.5-3 billion to initiate an open offering after buying out the promoters stake for public shareholders.
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Ambuja and ACC share price
Amidst this news, there is a fall in the shares. The shares of Ambuja Cement and ACC Cement have been declining since the last few sessions. Today on Tuesday, the shares of Ambuja Cement are trading at Rs 364.85 with a slight decline in the intraday on BSE. At the same time, the shares of ACC Cement are trading with a slight decline at Rs 2,226.60.