Ambuja Cement Share Gains After Adani Group Wins Race To Buy Holcim Stake Ambuja, ACC

Ambuja Cement, ACC Deal: The deal will catapult Adani Cement as the second-largest cement maker in the country

Ambuja Cement shares sprint 10 per cent in early trades on Monday after it was announced that the Adani Group has acquired a controlling stake in Swiss major Holcim’s India business, the Ambuja Cement-ACC combine

  • Last Updated:May 16, 2022, 10:06 IST
  • FOLLOW US ON:

Ambuja Cement shares sprint 10 per cent in early trades on Monday after it was announced that the Adani Group has acquired a controlling stake in Swiss major Holcim’s India business, the Ambuja Cement-ACC combine, for $10.5 billion in a fiercely-battled bidding process that saw participation from large players, including Sajjan Jindal-backed JSW Cement and Aditya Birla Group’s UltraTech Cement.

Holcim, through its subsidiaries, holds 63.19 per cent in Ambuja Cements and 54.53 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements). Adani Cement has to make a mandatory open offer to acquire an additional 20 per cent stake in Ambuja Cement.

The value for the Holcim stake and open offer consideration for Ambuja Cements and ACC is $10.5 billion, which makes this the largest ever acquisition by Adani, and India’s largest-ever M&A transaction in the infrastructure and materials space.

“As the deal closes, and ACC and Ambuja Cements become a direct, and most importantly, identifiable individual promoter-controlled entities and Adani emerges as the second-largest player in the Indian cement industry, this deal will potentially change the fortune of the sector for a betterment!,” said analysts at Philllip Capital.

The foreign research house PhilipCapital said: ” We have upgraded Ambuja Cement to buy and raised the target price to Rs 440 per share and also maintain buy on ACC and raised the target price to Rs 2,850 per share. Research firm kept estimates unchanged for Ambuja & ACC.” It upgraded target multiples for ACC from 13x to 15x and Ambuja Cement to 18x from 16x, reported CNBC-TV18.

Read all the Latest News , Breaking News and IPL 2022 Live Updates here.

For all the latest business News Click Here 

Read original article here

Denial of responsibility! TechAI is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.