Adani becomes India's second largest cement player

The Adani Family through Endeavour Trade and Investment Ltd BidCo a special purpose vehicle has successfully completed the acquisition of Ambuja Cements Ltd and ACC LtdThe transaction involved the acquisition of Holcims stake in Ambuja and ACC along with an open offer in both entities as per SEBI RegulationsThe value of the Holcim stake and open offer consideration for Ambuja Cements and ACC is USD 650 billion which makes this the largest ever acquisition by Adani and also Indias largest ever MampA transaction in the infrastructure and materials spacePost the transaction Adani will hold 631537 in Ambuja Cements and 566937 in ACC of which 500537 is held through Ambuja CementsWhat makes cement an exciting business is the headroom for growth in India which exceeds that of every other country well beyond 2050 said Mr Gautam Adani Chairman Adani Group Cement is a game of economics dependent on energy costs logistics and distribution costs and the ability to leverage a digital platform to transform production as well as gain significant supply chain efficiencies Each one of these capabilities is a core business for us and therefore provides our cement business a set of unmatched adjacencies It is these adjacencies that eventually drive competitive economics In addition our position as one of the largest renewable energy companies in the world will help us manufacture premium quality green cement well in line with the principles of a circular economy All of these dimensions put us on track to become the largest and most efficient manufacturer of cement by no later than 2030Currently Ambuja Cements and ACC have a combined installed production capacity of 675 MTPA The two companies are among the strongest brands in India with immense depth of manufacturing and supply chain infrastructure represented by their 14 integrated units 16 grinding units 79 readymix concrete plants and over 78000 channel partners across India The Board of Ambuja Cements approved an infusion of Rs 20000 cr into Ambuja by way of preferential allotment of warrants This will equip Ambuja to capture the growth in the market The actions will significantly accelerate value creation for all stakeholders in line with the Adani Groups business philosophyAlso ReadAmbuja Cements ACC shares surge on 105 billion AdaniHolcim dealBoth Ambuja Cements and ACC will benefit from synergies with the integrated Adani infrastructure platform especially in the areas of raw material renewable power and logistics where Adani Portfolio companies have vast experience and deep expertise Ambuja and ACC will also benefit from Adanis focus on ESG Circular Economy and Capital Management Philosophy The businesses will continue to be deeply aligned to UN Sustainability Development Goals with clear focus on SDG 6 Clean Water and Sanitation SDG 7 Affordable and Clean Energy SDG 11 Sustainable Cities and Communities and SDG 13 Climate ActionIn line with the Adani Portfolios governance philosophy the board committees of both Ambuja Cements and ACC have been reconstituted The Audit Committee and the Nomination amp Remuneration Committee now comprise 10037 independent directors Further two new committees have been constituted the Corporate Responsibility Committee and the Public Consumer Committee both comprising 10037 independent directors to provide assurance to the board on ESG commitments and maximise consumer satisfaction Also a Commodity Price Committee has been constituted comprising 5037 independent directors to strengthen risk managementThe transaction was financed by facilities aggregating to 450 billion availed from 14 international banks Barclays Bank PLC Deutsche Bank AG and Standard Chartered Bank acted as Original Mandated Lead Arrangers and Bookrunners to the transaction Barclays Bank PLC DBS Bank Deutsche Bank AG MUFG Bank and Standard Chartered Bank acted as Mandated Lead Arranger and Bookrunners to the transaction In addition BNP Paribas Citibank Emirates NBD Bank First Abu Dhabi Bank ING Bank Intesa Sanpaolo SpA Mizuho Bank Sumitomo Mitsui Banking Corporation and Qatar National Bank acted as Mandated Lead Arrangers for the transactionBarclays Bank PLC and Deutsche Bank AG acted as MampA advisors to BidCo with Standard Chartered Bank acting as the Structuring Advisor and ICICI Securities and Deutsche Bank AG acted as merchant bankers to the open offer by BidCo for Ambuja Cements and ACC Cyril Amarchand Mangaldas and Latham and Watkins LLP acted as MampA counsel to BidCo Cyril Amarchand Mangaldas and Latham and Watkins LLP also acted as legal counsels to BidCo for the financing with Allen amp Overy LLP and Talwar Thakore and Associates acting as legal counsels to the lenders About the Adani Portfolio Headquartered in Ahmedabad India the Adani Group is the largest and fastestgrowing portfolio of diversified businesses in India with interests in Logistics seaports airports logistics shipping and rail Resources Power Generation and Distribution Renewable Energy Gas and Infrastructure Agro commodities edible oil food products cold storage and grain silos Real Estate Public Transport Infrastructure Consumer Finance and Defence and other sectorsAdani owes its success and leadership position to its core philosophy of Nation Building and Growth with Goodness a guiding principle for sustainable growth The Group is committed to protecting the environment and improving communities through its CSR programmes based on the principles of sustainability diversity and shared valuesThis 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