Asia’s richest person Gautam Adani has managed to make another big deal on Sunday. In a statement issued by the company, it was said that it has entered into a deal to acquire a controlling stake in Holcim Ltd’s business in India for $10.5 billion, which will mark the group’s foray into the cement sector. Its effect has seen a jump of 3% in the stock of Ambuja Cement and 7% in the shares of ACC in the first trading day of the week today.
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ACC share price will go up to Rs 2850!
Brokerage PhillipCapital writes in its notes, “The Adani Group has played a masterstroke. As soon as this deal is completed, the Adani Group will become the second largest player in the Indian cement industry. As we read this deal will change the fortunes of the region. The brokerage has increased the target price of ACC to Rs 2850. At the same time, brokerages are also talking about betting on this stock. At the same time, the brokerage firm is also advising to buy Ambuja Cement with a target price of Rs 440.
What did the Adani Group say in its statement?
Adani Group in a statement said, “The Adani family, through an Offshore Special Purpose Vehicle (subsidiary), has announced that it has acquired the entire stake of Switzerland-based Holcim Limited in Ambuja Cements Limited and ACC Limited, two of India’s leading cement companies. Certain agreements have been made for acquisition.
Through its subsidiaries, Holcim holds 63.19 per cent in Ambuja Cements and 54.53 per cent in ACC (of which 50.05 per cent is held by Ambuja Cements). “Holcim’s stake and open offer consideration for Ambuja Cements and ACC is valued at $10.5 billion, making it the largest acquisition ever by the Adani Group and India in the infrastructure and materials space,” the statement said. The largest merger and acquisition transaction of the
“The same offer price of Rs 385 share price for Ambuja Cement and Rs 2,300 share price for ACC translates into cash proceeds of CHF 6.4 billion (Swiss francs) for Holcim,” Holcim said in a statement. ‘
The Adani Group has diversified over the years by entering into sectors such as airports, data centers and clean energy, apart from its core business of ports, power plants and coal mines. The group had last year set up two subsidiaries in the cement sector, Adani Cementation Limited and Adani Cement Limited. Adani Cementation Limited is planning to set up two cement units at Dahej in Gujarat and Raigad in Maharashtra.
The world’s largest cement maker Holcim had last month announced its exit from the country after a prolonged struggle here. The company has a production capacity of 66 million tonnes per annum (MTPA) through two listed companies ACC and Ambuja.
(with agency input)