Adani Receives SEBI Approval For A $10 Billion Open Offer For Ambuja Cements and ACC

The Adani Group gained market regulator SEBI approval today for a $3.8 billion (about. 10,100 crore) open bid for cement producers Ambuja and ACC. This comes months after it purchased a 63% share in Ambuja Cements from Holcim, a Swiss construction firm. 

To summarize, Gautam Adani, India's richest man, purchased Ambuja Cements and ACC from Holcim for $10.5 billion (about. 83,000 crore), transforming the Adani Group into the country's second largest cement maker overnight. The $10.5 billion acquisition includes a public offering of $3.8 billion. 

According to the approved open offer, Adani has offered 2,300 per share of ACC, which is a 1.7% discount to the closing price on August 19, and 385 per share of Ambuja Cements, which is an 8.5% discount. Companies must make an offer to acquire the stock of minority shareholders if their shareholding in a listed business exceeds 25%, according to SEBI guidelines. 

UltraTech Cement, owned by the Aditya Birla Group, is India's largest cement business, with nearly twice the capacity of Ambuja Cements and ACC combined. "Holcim's global leadership in cement production and best practices provides us some of the cutting-edge technology that will help us to speed the path to greener cement production," said Gautam Adani, chairman of Adani Group. 

Ambuja and ACC have a combined total of 23 cement facilities, 14 grinding stations, 80 ready-mix concrete plants, and over 50,000 channel partners in India. "Ambuja Cements and ACC are two of India's most recognizable brands." "When combined with our renewable power generation footprint, we gain a significant head start in the decarbonization path, which is essential for cement manufacturing," Adani said. As part of the agreement, the Adani Group will acquire Holcim's whole 63.19% holding in Ambuja Cements and 54.53% stake in ACC.