Completes acquisition of Ambuja Cements and ACC
- Largest acquisition in India’s Infrastructure and Materials house valued at USD 6.50 billion
- Post the transaction, Adani will maintain 63.15% in Ambuja Cements and 56.69% in ACC (of which 50.05% is held by means of Ambuja Cements)
- The mixed market capitalization of Ambuja Cements and ACC is USD 19 billion as on date
- With this acquisition, Adani is now India’s second largest cement producer (capability 67.5 MTPA)
- Enhanced company governance with 100% impartial administrators on Audit Committee and Nomination & Remuneration Committee
- Two new Board committees – Corporate Responsibility Committee and Public Consumer Committee – comprising solely of impartial administrators, will drive ESG assurance and consumer-first method
AHMEDABAD, India, Sept. 16, 2022 /PRNewswire/ — The Adani Family, by means of Endeavour Trade and Investment Ltd (“BidCo”), a particular goal car, has efficiently accomplished the acquisition of Ambuja Cements Ltd and ACC Ltd. The transaction concerned the acquisition of Holcim’s stake in Ambuja and ACC together with an open provide in each entities as per SEBI Regulations.
The worth of the Holcim stake and open provide consideration for Ambuja Cements and ACC is USD 6.50 billion, which makes this the largest ever acquisition by Adani, and likewise India’s largest ever M&A transaction within the infrastructure and supplies house. Post the transaction, Adani will maintain 63.15% in Ambuja Cements and 56.69% in ACC (of which 50.05% is held by means of Ambuja Cements).
“What makes cement an exciting business is the headroom for growth in India, which exceeds that of every other country well beyond 2050,” stated 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 2030.”
Currently, Ambuja Cements and ACC have a mixed put in manufacturing capability of 67.5 MTPA. The two firms are among the many strongest manufacturers in India with immense depth of producing and provide chain infrastructure, represented by their 14 built-in models, 16 grinding models, 79 ready-mix concrete vegetation and over 78,000 channel companions throughout India.
The Board of Ambuja Cements accredited an infusion of INR 20,000 Cr into Ambuja by means of preferential allotment of warrants. This will equip Ambuja to seize the expansion available in the market. The actions will considerably speed up worth creation for all stakeholders, in step with the Adani Group’s business philosophy.
Both Ambuja Cements and ACC will profit from synergies with the built-in Adani infrastructure platform, particularly within the areas of uncooked materials, renewable energy and logistics, the place Adani Portfolio firms have huge expertise and deep experience. Ambuja and ACC will even profit from Adani’s give attention to ESG, Circular Economy and Capital Management Philosophy. The companies will proceed to be deeply aligned to UN Sustainability Development Goals with clear give attention to SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action).
In line with the Adani Portfolio’s governance philosophy, the board committees of each Ambuja Cements and ACC have been reconstituted. The Audit Committee and the Nomination & Remuneration Committee now comprise 100% impartial administrators. Further, two new committees have been constituted – the Corporate Responsibility Committee and the Public Consumer Committee – each comprising 100% impartial administrators to offer assurance to the board on ESG commitments and maximise client satisfaction. Also, a Commodity Price Committee has been constituted, comprising 50% impartial administrators, to strengthen danger administration.
The transaction was financed by services aggregating to USD 4.50 billion availed from 14 worldwide 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 S.p.A, Mizuho Bank, Sumitomo Mitsui Banking Corporation and Qatar National Bank acted as Mandated Lead Arrangers for the transaction.
Barclays Bank PLC and Deutsche Bank AG acted as M&A advisors to BidCo, with Standard Chartered Bank appearing because the Structuring Advisor, and ICICI Securities and Deutsche Bank AG acted as service provider bankers to the open provide by BidCo for Ambuja Cements and ACC.
Cyril Amarchand Mangaldas and Latham and Watkins LLP acted as M&A counsel to BidCo. Cyril Amarchand Mangaldas and Latham and Watkins LLP additionally acted as authorized counsels to BidCo for the financing with Allen & Overy LLP and Talwar Thakore and Associates appearing as authorized counsels to the lenders.
About the Adani Portfolio
Headquartered in Ahmedabad, India, the Adani Group is the largest and fastest-growing portfolio of diversified companies in India with pursuits in Logistics (seaports, airports, logistics, delivery and rail), Resources, Power Generation and Distribution, Renewable Energy, Gas and Infrastructure, Agro (commodities, edible oil, meals merchandise, chilly storage and grain silos), Real Estate, Public Transport Infrastructure, Consumer Finance and Defence, and different sectors. Adani owes its success and management place to its core philosophy of ‘Nation Building’ and ‘Growth with Goodness’ – a tenet for sustainable development. The Group is dedicated to defending the atmosphere and enhancing communities by means of its CSR programmes based mostly on the rules of sustainability, range and shared values.
Further info at www.adani.com.
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