Gautam Adani’s New $10.5 Billion Deal: A 10-Point Guide


Gautam Adani's New $10.5 Billion Deal: A 10-Point Guide

Gautam Adani overtook Mukesh Ambani as Asia — and India’s — richest man earlier this year.

New Delhi:
Billionaire Gautam Adani’s conglomerate plans to buy Switzerland-based Holcim AG’s cement businesses in India for $10.5 billion (around Rs 81,361 crore). This will be the largest-ever acquisition. Under the deal, Holcim will sell its 63 per cent stake in Ambuja Cements to Adani Group. Adani will also inherit Ambuja’s controlling stake in another publicly traded cement producer, ACC, and buy Holcim’s direct 4.5 per cent holding in the unit.

Here’s Your 10-Point Cheat-Sheet To This Big Story:

  1. The divestment by Swiss building-materials firm Holcim marks its latest effort to reduce exposure to carbon-intensive cement production and boost its environmental, social and corporate governance (ESG) credentials. Holcim has been selling units outside North America and Europe in a bid to sharpen its focus on key markets.

  2. Holcim Chief Executive Jan Jenisch has been selling non-core cement businesses and buying new construction companies to benefit from the rising demand for energy-efficient buildings.

  3. Holcim’s sale of its Indian business — which is subject to local regulatory approvals — is expected to close in the second half of 2022.

  4. Adani Group is offering Rs 385 per share for Ambuja Cements and it will pay Rs 2,300 per share for ACC.

  5. Adani Group’s flagship firm Adani Enterprises Ltd. has two cement subsidiaries. Adani Cementation Ltd. is planning to build an integrated facility in the state of Gujarat, according to a compliance report in November. The group established Adani Cement Industries Ltd. in June 2021.

  6. For Adani, the deal would propel it to become India’s second-largest cement producer. Adani Group’s flagship firm Adani Enterprises has two cement subsidiaries. Adani Cementation is planning to build an integrated facility in Gujarat. The group established Adani Cement Industries in June 2021.

  7. Adani Group has been looking to transform into a multi-sector juggernaut like Reliance Industries. Mr Adani overtook Mukesh Ambani as Asia — and India’s — richest man earlier this year, according to the Bloomberg Billionaires Index.

  8. Adani’s sons could take charge of day-to-day operations of the cement business, Phillip Capital analyst Vaibhav Agarwal said in a report.

  9. Founded in 1983, Ambuja has a cement capacity of 31 million metric tonnes and has six integrated manufacturing plants and eight cement grinding units in India.

  10. Shares of Ambuja Cements rose 2.59 per cent to settle at Rs 368.10, while ACC advanced 3.70 per cent to close at Rs 2,192. Adani Enterprises surged 2.84 per cent to finish at Rs 2,112.50.



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