Adani Completes Acquisition Of Ambuja Cement: Stock Hit 52-Week High

The Adani Group is set to invest Rs. 20,000 crore in Ambuja Cement. The Ambani group has completed the acquisition of Ambuja Cements Ltd and ACC Ltd., through the Endeavour Trade and Investment Ltd, a special purpose vehicle, the group mentioned in a statement. This transaction was first announced in May, this year. The share price of Ambuja Cement hit a 52-week high on the last trading day, closing at Rs. 518.15 a piece. After the transaction, the Adani Group is going to have a 63.15% stake in Ambuja Cements and 56.69% stake in ACC (of which 50.05% is held through Ambuja Cements).

The Ambani group also mentioned that the value of the Holcim stake and open offer consideration for Ambuja Cements and ACC is $6.5 billion, which makes this the largest ever acquisition by Adani. It is also India's largest ever M&A transaction in the infrastructure and materials space.

"What makes cement an exciting business is the headroom for growth in India, which exceeds that of every other country well beyond 2050," Gautam Adani, Chairman, Adani Group, commented on the matter. He added, "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."