ACC, Ambuja Cement's shares rally after Adani-Holcim India deal

New Delhi, May 16 (PTI) Shares of ACC and Ambuja Cements were in huge demand on Monday after Gautam Adani's group clinched a deal to acquire a controlling stake in Holcim Ltd's businesses in India for USD 10.5 billion.

The stock of ACC rallied 7.79 per cent to Rs 2,288.15 on the BSE.

Shares of Ambuja Cements gained 4.13 per cent to Rs 373.65.

Asia's richest man Gautam Adani's group on Sunday said it has clinched a deal to acquire a controlling stake in Holcim Ltd's businesses in India for USD 10.5 billion, marking ports-to-energy conglomerate's entry into the cement sector.

The Adani Group will acquire 63.1 per cent of Ambuja Cements Ltd along with related assets. Ambuja's local subsidiaries include ACC Ltd, which is also publicly traded.

"The Adani Family, through an offshore special purpose vehicle, announced that it had entered into definitive agreements for the acquisition of Switzerland-based Holcim Ltd's entire stake in two of India's leading cement companies - Ambuja Cements Ltd and ACC Ltd," the group said in a statement.

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).

"The value for the Holcim stake and open offer consideration for Ambuja Cements and ACC is USD 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," the statement said.

The deal will make billionaire Gautam Adani's conglomerate the second largest player in the domestic cement sector with acquiring the joint control of Holcim's two Indian step-down firms ACC Ltd and Ambuja Cement.

Adani has in the last couple of years diversified beyond core business of operating ports, power plants and coal mines into airports, data centres and clean energy.