Ambuja Cements, ACC shares surge on $10.5 billion Adani-Holcim deal

The share price of Ambuja Cements and ACC surged on Monday after Adani Group won the race to acquire a controlling stake in these companies from Switzerlandbased Holcim for 105 billionAmbuja Cements share was trading 293 per cent higher at Rs 36930 at the BSE at 1346 pm The scrip soared to a high of Rs 37750 in the morning tradeThe share price of ACC Limited jumped 412 per cent to Rs 220075 The scrip surged to a high of Rs 228815 in the morning tradeAmbuja Cements and ACC shares have surged after Adani Group agreed to buy a controlling stake in both the companiesAdani Group has won the deal to acquire 6319 per cent stake in Ambuja Cements Ltd and its subsidiary ACCHolcim has signed a binding agreement for the Adani Group to acquire its business in India comprising its 6311 per cent stake in Ambuja Cement which owns a 5005 per cent interest in ACC as well as its 448 per cent direct stake in ACC The corresponding offer share prices of Rs 385 for Ambuja Cement and Rs 2300 for ACC translate into cash proceeds of 64 billion Swiss Franc CHF for HolcimWith Holcims global leadership in sustainability we are acquiring some of the most efficient building materials operations in India powered with clean technologies like heat recovery systems We recognize that Ambuja and ACC operations are energyintensive and therefore when combined with our renewable power generation capabilities we gain a big head start in the decarbonisation journey that is a must for Indian industry Gautam Adani Chairman Adani Group said in a statementWith this acquisition Adani Group will become Indias secondbiggest cement producer UltraTech Cement is Indias largest cement producer with 120 million tonnes capacityThe combined capacity of Ambuja Cement and ACC includes 31 cement manufacturing sites and 78 readymix concrete plants with 10700 people across IndiaThe transaction is subject to approval by local authorities and is expected to close in the second half of 2022 according to a statement released by Ambuja Cements LimitedReacting to the deal Jan Jenisch CEO Holcim said With the Adani Group we have found a perfect owner to unleash our Indian business next era of growth for our people and all stakeholders in a swift and efficient transaction I am proud of Holcims track record in the Indian market where we significantly increased our capacity over the years while advancing our leadership in sustainabilityThe construction sector has never been as attractive as it is today with so many opportunities to build better and more with less to improve living standards for all in a sustainable manner In the last twelve months we have invested CHF 5 billion in Solutions amp Products as a new growth engine for the company while continuously pursuing boltons in aggregates and readymix concrete Holcim is ready to seize further opportunities in line with our Strategy 2025 Accelerating Green Growth to become the global leader in innovative and sustainable building solutions Jenisch saidI would like to thank our 10700 Indian colleagues who have played an essential role in the development of our business over the years with their relentless dedication and expertise I am convinced that the Adani Group is the right home for them as well as for our customers to continue to thrive in the future he added ANIThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever