The Competition Commission of India (CCI) approved Adani Group firm’s acquisition of Holcim’s stake in cement manufacturers Ambuja Ltd and ACC Ltd .
“The CCI approves acquisition of the stake in Holderind Investments Limited, Ambuja Cements Limited and ACC Limited by Endeavour Trade and Investment Limited,” the anti-trust watchdog said in a statement issued Saturday.
The proposed deal envisages the acquisition of the entire share capital of Holderind Investments Limited (Holderind) by Endeavour Trade and Investment Limited (Endeavour), it added.
Holderind holds 63.11% of equity share capital of Ambuja Cements Limited (Ambuja) and 4.48% of the equity share capital of ACC Limited (ACC). Further, Ambuja holds 50.05% of the paid-up equity share capital of ACC.
In terms of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, Endeavour is required to launch an open offer for further acquisition of up to 26% of the expanded share capital of each of Ambuja and ACC. Endeavour is a newly incorporated company and belongs to the Adani group.
Holderind is a holding company of Ambuja and ACC. Ambuja and ACC are engaged in the manufacture of cement in India.
It was earlier reported that several international banks, led by BNP Paribas, Barclays and Citigroup supported Adani’s acquisition of the Swiss building materials. The group raised $5.25 billion as debt, admitting support to the acquisition from these global financial institutions.
Ambuja and ACC have a capacity of 70 million tonnes per annum (MTPA) with a total cost of $10.5 billion.
Adani Group will first acquire Holcim’s 63.1% stake in Ambuja and a 4.4% stake in ACC for $6.5 billion. Ambuja holds a 50% stake in ACC. Thereafter, the Adani Group will make a mandatory open offer for Ambuja’s minority shareholders at Rs 385 per share and ACC at Rs 2,300 per share.
