Holcim Group to sell Ambuja Cement and ACC Ltd
Cement

Holcim Group to sell Ambuja Cement and ACC Ltd

The Holcim Group, the largest cement producer worldwide, may exit India, placing its twin listed companies, the Ambuja Cements and ACC Ltd, for sale as part of a worldwide plan to focus on core markets.

JSW Steel India and Adani Group, among others, are considered to have undertaken early-stage talks with Holcim to explore their interest levels. Both are newcomers to the cement industry, but they have big plans to grow.

According to the sources, feelers have also been sent to regional cement companies like Shree Cement.

Global cement companies that have been eyeing India for some time are expected to be approached, as acquiring both Ambuja and ACC would propel any player to second place in the highly competitive, fragmented, and price-sensitive market, with a combined pan-India capacity of 66 million tonnes per annum.

Holcim, founded in Switzerland, merged with French competitor Lafarge in 2015 to become a global conglomerate.

Lafarge Holcim, a European cement and building materials giant was obliged to undergo various restructurings to comply with antitrust regulators throughout the world, including divesting properties in Europe and Asia, including India. Since then, the united company has been renamed Holcim Group.

The total market capitalisation of the two firms is Rs 1.14 lakh crore, with Ambuja alone valued at Rs 73,349 crore, making it one of India's leading prospective mergers and acquisitions. Any merger would also result in an open offer in both for a 26% stake in the company.

Discussions between Holcim's senior management and their peers at JSW and Adani have been continuing in India and Europe for some weeks and have gained traction in recent days.

Prospective suitors have approached global institutions to organise at least $5-7 billion in potential finance.

Holcim has highlighted speciality building solutions and high-end energy efficient renovations as a significant emphasis soon, as part of a global re-evaluation of its enormous portfolio that will result in old operations being divested.

It is part of the company's strategic Strategy 2025 - Accelerating Green Growth initiative, which strives to find sustainable construction materials solutions. In comparison to ready-mix concrete, aggregates, roofing, and green construction solutions, cement's importance in the whole group is dwindling.

Image Source

Also read: ACC Ltd net profit declines 40.55% to Rs 280.85 cr for Q4 FY22

The Holcim Group, the largest cement producer worldwide, may exit India, placing its twin listed companies, the Ambuja Cements and ACC Ltd, for sale as part of a worldwide plan to focus on core markets. JSW Steel India and Adani Group, among others, are considered to have undertaken early-stage talks with Holcim to explore their interest levels. Both are newcomers to the cement industry, but they have big plans to grow. According to the sources, feelers have also been sent to regional cement companies like Shree Cement. Global cement companies that have been eyeing India for some time are expected to be approached, as acquiring both Ambuja and ACC would propel any player to second place in the highly competitive, fragmented, and price-sensitive market, with a combined pan-India capacity of 66 million tonnes per annum. Holcim, founded in Switzerland, merged with French competitor Lafarge in 2015 to become a global conglomerate. Lafarge Holcim, a European cement and building materials giant was obliged to undergo various restructurings to comply with antitrust regulators throughout the world, including divesting properties in Europe and Asia, including India. Since then, the united company has been renamed Holcim Group. The total market capitalisation of the two firms is Rs 1.14 lakh crore, with Ambuja alone valued at Rs 73,349 crore, making it one of India's leading prospective mergers and acquisitions. Any merger would also result in an open offer in both for a 26% stake in the company. Discussions between Holcim's senior management and their peers at JSW and Adani have been continuing in India and Europe for some weeks and have gained traction in recent days. Prospective suitors have approached global institutions to organise at least $5-7 billion in potential finance. Holcim has highlighted speciality building solutions and high-end energy efficient renovations as a significant emphasis soon, as part of a global re-evaluation of its enormous portfolio that will result in old operations being divested. It is part of the company's strategic Strategy 2025 - Accelerating Green Growth initiative, which strives to find sustainable construction materials solutions. In comparison to ready-mix concrete, aggregates, roofing, and green construction solutions, cement's importance in the whole group is dwindling. Image Source Also read: ACC Ltd net profit declines 40.55% to Rs 280.85 cr for Q4 FY22

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