Adani, JSW Cement and Aditya Birla Group in race for Holcim assets

MUMBAI:  Ahmedabad-based Adani Group, JSW Cement and Aditya Birla Group are in the fray for acquiring Swiss-based Holcim’s cement assets— Ambuja Cements and ACC — cumulatively valued at around $14.5 bn,  with Adani believed to be leading the race, multiple sources told TNIE. 

“Adani Group is ahead in the race and has tied up funding requisite for the deal,” one of the source said. 
The unlisted JSW Cement is also making a bid and would offer $7bn, with $4.5 bn of its own equity and $2.5 bn of private equity funding, an FT report cited JSW Group chairman Sajjan Jindal as saying. 

The third is Grasim Industries promoted UltraTech Cement, India’s largest cement company, followed by Swiss-based Holcim. Grasim Industries is part of Aditya Birla Group.

The reason for the sale is Holcim’s reported objective of selling its cement assets across markets and focusing on the building materials segment. 

Queries to Holcim, Aditya Birla Group and Adani Group went answered till press time. A JSW group spokesperson declined comment. Holcim holds 63.19% of Ambuja Cements.

ACC is a subsidiary of Ambuja, which holds 50.05% in it. The two have a combined production capacity of 64.05 mn tonnes a year.

The Aditya Birla Group, whose UltraTech is the country’s largest cement company with around 120 mn tonne per annum capacity, is also a contender.

But it is not clear how the company will qualify given the monopolistic position it will be in if it acquires Holcim’s assets. 

Ambuja Cements and ACC’s combined market cap was Rs 1.12 lakh cr on Tuesday.  The Indian cement industry is the world’s second-largest with a capacity of 540 mn tonnes a year in 2020.

In the quarter ended March 2022, Ambuja Cements posted a net profit of Rs 495.17 crore on revenue of Rs 3,925.22 crore. ACC posted net profit of Rs 392 crore on revenue of Rs 4,426.5 crore in Q4,2022.

Acquisition bid

• Holcim holds 63.19% of Ambuja Cements.

• ACC is a subsidiary of Ambuja, which holds 50.05% in it.

• Ambuja, ACC have a combined production capacity of 64.05 million tonnes a year.

• Rs 1.12 lakh crore Ambuja and ACC’s combined market cap on Tuesday.

World’s largest

Indian cement industry is the world’s second-largest with a capacity of 540 millon tonnes.