Swiss cement giant Holcim has decided to take complete control of Ambuja Cements India (ACIL), the local company through which it controls ACC, India’s largest cement major. Holcim will buy 11% from Ambuja Cement (ACL), formerly Gujarat Ambuja, for Rs 588.91 crore.Ambuja Cement, which created ACIL in 2000 and offered stakes to the Government of Singapore and American International Group (AIG) in what was then the country’s largest private equity transaction, will now completely exit the company.
The move will enable Holcim to own 100% of an entity that owns stakes in two of India’s largest cement players. ACIL controls 42.88% in ACC, India’s largest cement maker with a 13% market share.ACIL also owns 9.9% in Ambuja Cement, the third-biggest cement-maker with a 10% market share. Holcim directly owns 36% in Ambuja Cement.
Ever since French giant Lafarge bought Tata Steel’s cement plant in 1998, India’s growing cement industry — currently world’s second-largest — has long attracted global cement giants. Since then, both Lafarge and Holcim have expanded their presence here, with the aggressive Holcim garnering a large chunk of the market.
Read more in The Economic Times article.
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