PR96006

AHMEDABAD, India, May 15, 2022 /PRNewswire=KYODO JBN/ --

Largest Ever Acquisition in India's Infra and Materials space valued at USD

10.5 billion

Editor's Synopsis

Acquisition propels Adani into the cement business, and will establish its new

materials, metal and mining vertical

With this, Adani is now India's second largest cement manufacturer (capacity

~70 MTPA)

AHMEDABAD, India, May 15, 2022 /PRNewswire/ -- 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.

Holcim, through its subsidiaries, holds 63.19% in Ambuja Cements and 54.53% in

ACC (of which 50.05% 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.

"Our move into the cement business is yet another validation of our belief in

our nation's growth story," said Mr Gautam Adani, Chairman of the Adani Group.

"Not only is India expected to remain one of the world's largest demand-driven

economies for several decades, India also continues to be the world's second

largest cement market and yet has less than half of the global average per

capita cement consumption. In statistical comparison, China's cement

consumption is over 7x that of India's. When these factors are combined with

the several adjacencies of our existing businesses that include the Adani

Group's ports and logistics business, energy business, and real estate

business, we believe that we will be able to build a uniquely integrated and

differentiated business model and set ourselves up for significant capacity

expansion."

Mr Adani added, "Holcim's global leadership in cement production and

sustainability best practices brings to us some of the cutting-edge

technologies that will allow us to accelerate the path to greener cement

production. In addition, Ambuja Cements and ACC are two of the strongest brands

recognized across India. When augmented with our renewable power generation

footprint, we gain a big headstart in the decarbonization journey that is a

must for cement production. This combination of all our capabilities makes me

confident that we will be able to establish the cleanest and most sustainable

cement manufacturing processes that will meet or exceed global benchmarks."

"I am delighted that the Adani Group is acquiring our business in India to lead

its next era of growth," said Mr Jan Jenisch, CEO of Holcim Limited. "Mr Gautam

Adani is a highly recognized business leader in India who shares our deep

commitment to sustainability, people and communities. I would like to thank our

10,000 Indian colleagues who have played an essential role in the development

of our business over the years with their relentless dedication and expertise.

I am confident that the Adani Group is the perfect home for them as well as our

customers to continue to thrive."

With India's cement consumption at just 242 kg per capita, as compared to the

global average of 525 kg per capita, there is significant potential for the

growth of the cement sector in India. The tailwinds of rapid urbanization, the

growing middle class and affordable housing together with the post-pandemic

recovery in construction and other infrastructure sectors are expected to

continue driving the growth of the cement sector over the next several decades.

Ambuja Cements and ACC currently have a combined installed production capacity

of ~70 MTPA. The two companies are among the strongest brands in India with

immense depth of manufacturing and supply chain infrastructure, represented by

their 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants and

over 50,000 channel partners across India.

Both Ambuja and ACC will benefit from synergies with the integrated Adani

infrastructure platform, especially in the areas of raw material, renewable

power and logistics, where Adani Portfolio companies have vast experience and

deep expertise. This will enable higher margins and return on capital employed

for the two companies. The Companies will also benefit from Adani's focus on

ESG, Circular Economy and Capital Management Philosophy. The businesses will

continue to be deeply aligned to UN Sustainability Development Goals with clear

focus on SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean

Energy), SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate

Action).

The acquisition is subject to regulatory approvals and conditions.

About Adani

Headquartered in Ahmedabad, India, Adani is the largest and fastest-growing

portfolio of diversified businesses in India with interests in Logistics

(seaports, airports, logistics, shipping and rail), Resources, Power Generation

and Distribution, Renewable Energy, Gas and Infrastructure, Agro (commodities,

edible oil, food products, cold storage and grain silos), Real Estate, Public

Transport Infrastructure, Defence & Aerospace, and other sectors.

Adani owes its success and leadership position to its core philosophy of

'Nation Building' and 'Growth with Goodness' – a guiding principle for

sustainable growth. The Group is committed to protecting the environment and

improving communities through its CSR programmes based on the principles of

sustainability, diversity and shared values. For more information, please visit

www.adani.com　

Media inquiries: Roy Paul I roy.paul@adani.com I 91-79-25556628

About Holcim

Holcim builds progress for people and the planet. As a global leader in

innovative and sustainable building solutions, Holcim is enabling greener

cities, smarter infrastructure and improving living standards around the world.

With sustainability at the core of its strategy Holcim is becoming a net zero

company, with its people and communities at the heart of its success.

The company is driving the circular economy as a world leader in recycling to

build more with less. Holcim is the company behind some of the world's most

trusted brands in the building sector including ACC, Aggregate Industries,

Ambuja Cement, Disensa, Firestone Building Products, Geocycle, Holcim and

Lafarge. Holcim is 70,000 people around the world who are passionate about

building progress for people and the planet through four business segments:

Cement, Ready-Mix Concrete, Aggregates and Solutions & Products. More

information is available on www.holcim.com.

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Source: Adani Enterprise Limited