CCI approves Adani Group’s $10.5 billion acquisition of Holcim’s stake in Ambuja Cements

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The Indian Competition Commission (ICC) has approved the acquisition of Swiss cement major Holcim’s stake in Ambuja Cements Ltd and its subsidiary ACC Ltd by Endeavor Trade and Investments, an Adani Group company.

It may be recalled that Adani Group had concluded in May this year a 10.5 billion dollar agreement to acquire Holcim’s cement business in India. Upon completion of all regulatory approvals for this acquisition, Adani Group will become India’s second largest cement maker.

Holcim, through Holderind Investments Limited, holds 63.11% of the share capital of Ambuja Cements Ltd and 4.48% of the share capital of ACC Limited. In addition, Ambuja holds 50.05% of ACC’s paid-up share capital.

The proposed combination contemplates the acquisition of the entire share capital of Holderind Investments by Endeavor Trade. Endeavor 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 cement manufacturing in India.

Under the SEBI takeover code, Endeavor is required to launch an open offer for a further acquisition of up to 26% of the expanded share capital of Ambuja and ACC.

IIFL Home Finance-ADIA Group Agreement

Meanwhile, CCI also approved the acquisition of a stake in IIFL Home Finance indirectly by the Abu Dhabi Investment Authority (ADIA) group. It is worth recalling that in June this year, the ADIA subsidiary took a 20% stake in IIFL Home Finance for ₹2,200 crore.

This would be one of the largest equity investments in the affordable housing finance segment in India by a financial investor.

ADIA is a public institution established as an independent investment institution by the Emirate of Abu Dhabi. ADIA manages a global investment portfolio across multiple asset classes and sub-categories including developed equities, emerging market equities, small cap equities, government bonds, credit, fixed income , real estate, infrastructure, private equity, cash and alternatives.

Published on

August 14, 2022

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