New Delhi: The Adani Group has completed its financing for the $10 billion purchase of Holcim’s India businesses, ACC and Ambuja, putting them in a strong position to take over the 66 MTPA assets in India. The Ahmedabad-based company is said to be receiving assistance from global banks Barclays and Deutsche Bank, as well as Indian banks ICICI and Axis.
According to one of the sources, both parties are in the last stages of discussions before signing an exclusivity agreement.
There is still no assurance that the acquisition will be approved by shareholders. As of yet, no final choices have been taken. It’s also unclear whether both parties have agreed to an exclusive contract.
JSW Group, a competitor, is also in the process of securing funding.
Emails submitted to Adani’s spokeswoman did not receive a prompt response.
UltraTech, part of the Aditya Birla Group, is India’s largest cement business, with a capacity of 117 MTPA.
Holcim, founded in Switzerland, combined with French competitor Lafarge in 2015 to become a global conglomerate. Lafarge Holcim, a European cement and building materials behemoth, was obliged to undergo various restructurings in order to comply with antitrust regulators throughout the world, including divesting properties in Europe and Asia, including India. Since then, the united company has been renamed Holcim Group.
Holcim’s main company in India is Ambuja Cement, which it controls 63.1 percent of as promoters through Holderind Investments Limited. ACC Ltd is owned by Ambuja Cement, which owns 50.05 percent of the company. Another 4.48 percent of ACC is owned directly by Holderind Investment (Holcim). Holcim has been attempting to simplify operations by integrating the two operations for maximum cost and operational savings since 2018, although the process is still ongoing.
The total market capitalization of the two firms is Rs 1.14 lakh crore ($15 billion) as of Wednesday, with Ambuja alone valued at Rs 73,349 crore ($9.7 billion), making it undoubtedly one of India’s greatest prospective mergers and acquisitions. Any prospective deal will also result in an open offer in both for the purchase of an additional 26 percent.