Billionaire Gautam Adani’s conglomerate is set to strike a deal to acquire a majority stake in the business of Holcim Ltd. in India, according to people familiar with the matter, giving Asia’s richest person a foothold in the subcontinent’s fragmented cement sector.
Adani Group is working out the final details of a $10 billion deal for 63.1% of Ambuja Cements Ltd. as well as related assets, the sources said, asking not to be identified while discussing confidential information. A transaction could be announced in the coming days, they said.
Bloomberg News reported in April that Holcim was in advanced talks with Adani Group on a deal. Ambuja’s local subsidiaries include ACC Ltd., which is also publicly listed.
Deliberations are ongoing and could still be delayed or waver, depending on the people. Representatives of Adani Group and Holcim could not be reached for comment outside of normal business hours.
The Adani Group has moved beyond its core business of operating ports, power plants and coal mines and into areas such as data centers, airports, digital services and retail.
A first-generation entrepreneur with a net worth of around $100 billion, according to the Bloomberg Billionaires Index, Gautam Adani has sought to diversify his business into a multi-industry juggernaut like Mukesh Ambani’s Reliance Industries Ltd. Adani overtook Ambani as the richest man in Asia. earlier this year.
The agreement for Ambuja will transform the Adani group into a major player in the cement sector. Founded in 1983, Ambuja has a cement capacity of 31 million metric tons and has six integrated manufacturing plants and eight cement grinding units in India, its website says.
Adani Group’s flagship company, Adani Enterprises Ltd., has two cement subsidiaries. Adani Cementation Ltd. plans to build an integrated facility in Gujarat, according to a compliance report in November. The group established Adani Cement Ltd. in June 2021.
Switzerland-based Holcim recently sold non-core assets, divested its Brazil unit for $1 billion in September and plans to offload its Zimbabwe business. Meanwhile, the company agreed to buy Malarkey Roofing Products in December and Firestone Building Products in early 2021 as CEO Jan Jenisch adds new construction businesses outside of traditional cement.
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