US Federal Reserve’s latest minutes provided little direction as its signals on interest rates and inflation were mixed
Thungela, Exxaro and Seriti are all committed to the dark rock despite the turn to renewables
Deputy president says local govenrment must collect from consumers or face consequences
The party’s internal leadership contest in December is expected to gain momentum once the the nomination process kicks off
The ports giant sees first-half revenue surge 60%, but expects its growth boom to moderate in the rest of the year
The rand will continue to lose value if we don't adopt policies that create a superior emerging market with a far lower risk premium
Food Safety Agency tells retailers and food producers it will seize vegan products with names that it says are for meat
Justice department chief insists the ongoing investigation into Trump would be ‘severely compromised’ if the affidavit is released
England captain leads fight back but Jansen and Maharaj put on 72 for seventh wicket to put SA in control
‘It is worrying that some other conditions, such as dementia and seizures, continue to be more frequently diagnosed after Covid-19, even two years later’
India’s Adani Group acquired a controlling stake in Holcim’s cement businesses in India in a $10.5bn deal to become the second-biggest cement producer in the country, Adani said in a statement on Sunday.
Asia’s richest person Gautam Adani’s conglomerate acquired 63.19% of Ambuja Cements and its subsidiary ACC in fierce bidding with local companies.
The divestment is the latest move by Holcim as it seeks to reduce its reliance on cement production, an industrial process which produces high levels of carbon emissions and has therefore deterred many environmentally conscious investors.
In recent years the Switzerland-based company accelerated its efforts to get out of carbon-intensive cement making.
Ambuja and ACC have a combined capacity to produce at least 70-million tonnes of cement annually, second to UltraTech Cement, which has 120-million tonnes capacity.
The Adani family, through an offshore special purpose vehicle, had entered into definitive agreements for the acquisition of Holcim’s entire stake in Ambuja and ACC, the Adani Group said in a statement.
Holcim said in a statement it had signed a binding agreement for the Adani Group to acquire Holcim’s business in India, comprising its stake in Ambuja Cement, which owns a 50.05% interest in ACC, as well as its 4.48% direct stake in ACC. Holcim would receive nearly $6.4bn for the stakes.
The Adani Group said it would acquire more shares through an open offer.
The transaction is expected to close in the second half of 2022, Holcim said.
Adani Group’s flagship firm Adani Enterprises has two cement subsidiaries. Adani Cementation plans to build an integrated facility in western Gujarat and Maharastra states, according to an official in the Adani group.
Ambuja Cement has 14 cement plants, employing 4,700 people. ACC has 17 cement plants and 78 ready mix concrete factories and employs 6,000 people.
Official sources said the latest deal was the biggest divestment since Holcim merged with French rival Lafarge in 2015.
Since then the company has been selling fringe parts of its business as it seeks to concentrate on North America and Europe.
In 2021, the company sold its Brazilian operation for $1.025bn and it also exited the Philippines and Indonesia.
Would you like to comment on this article? Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.