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Indian Billionaire Gautam Adani Acquires Cement Businesses To Expand
In a strategic move to expand its cement operations, Indian billionaire Gautam Adani’s Ambuja Cements has approved a merger with two other companies. This decision comes as India is experiencing a construction boom, driving an unprecedented demand for cement.
As part of the agreement, Sanghi Industries will merge with Ambuja Cements, with shareholders receiving 12 shares of Ambuja for every 100 shares they hold in Sanghi. This acquisition follows another significant move by Adani’s group, having acquired 100% of Penna Cement in August for a staggering $1.2 billion.
According to Ajay Kapur, CEO of the cement business for the Adani Group, the merger aims to make the company more competitive and efficient, ultimately enhancing shareholder value. The transaction is expected to be completed within a year once approvals are obtained from stakeholders and regulators.
The Adani Group’s rapid expansion in the cement industry has sparked intense competition with fellow billionaire Kumar Mangalam Birla’s Ultratech Cement, which remains the industry leader with an annual production capacity of over 150 million tonnes. Following this acquisition, Ambuja Cements will have a production capacity of 89 million tonnes from 22 manufacturing plants and 21 grinding units across the country.
It is worth noting that Adani’s net worth currently stands at $62.9 billion, as per Forbes’ real-time data, despite a significant dip in value following allegations of a $250 million bribery scheme to secure lucrative energy contracts from the Indian government. The accusation wiped out almost $16 billion of Adani’s net worth within a week.
The Adani Group has diversified interests in ports, airports, power generation and transmission, and green energy, apart from its cement operations.
Source: www.forbes.com
