Swiss cement maker Holcim Group is on a journey towards its green focus. The giant has recently acquired building solutions and products, however, it is divesting its stake in Asian countries and others such as Russia and Brazil.
The board of the cement maker is about to meet next week to decide on the sale of its Indian cement businesses—Ambuja Cements Ltd and ACC Ltd.
According to sources, Adani Group, JSW Group and UltraTech Cement are in contention to buy these companies. Nothing has been finalized yet, however, the bids for these assets are expected to be upwards of $10 billion. They have already started tying up funding for their offers.
| Ambuja Cements | ACC Limited | |
| Net Sales | 28965.5 Cr | 16151.7 Cr |
| EBITDA | 6462.6 Cr | 3161.7 Cr |
| Net Profit | 2780.38 Cr | 1862.99 Cr |
| Manufacturing Capacity | 31.45 mtpa | 36 mtpa |
Holcim owns a 61.3% stake in Ambuja Cements, which in turn holds a 50.5% stake in ACC. The combined market capitalization of both the companies together stood at over ₹1.19 trillion as of Tuesday.
When any of the potential buyers, Adani Group, JSW Group or UltraTech Cement buy the Holcim Group’s stake, they’ll become the second-largest player with a combined capacity of 66 million tonnes per annum (mpta) going up to 80 mtpa with the completion of expansion projects.
The Adani Group is already taking financing from ICICI Bank, Axis Bank, Barclays and Deutsche Bank. According to sources, they are already in the final stages of negotiations but there is still no guarantee that the deal will go through as it is subject to approvals. We’ll have to wait and watch as to who gets to buy the cement behemoth’s stake in India.
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