Gautam Adani, Chairman of Adani Group, won the battle to purchase Holcim's share in Ambuja Cements and its subsidiary ACC for $10.5 billion (about Rs 81,361 crore) including open offers on Sunday.

The Adani Group announced the formation of an offshore special purpose vehicle to acquire Holcim Ltd's full shareholding in two of India's major cement businesses, Ambuja Cements Ltd and ACC Ltd.

Through its subsidiaries, Holcim owns 63.19 percent of Ambuja Cements and 54.53 percent of ACC. The value of the Holcim share and open offer consideration for Ambuja Cements and ACC is USD 10.5 billion, making this Adani's largest purchase to date and India's largest M&A deal in the infrastructure and materials market.

"Our entry into the cement market validates our trust in our country's economic story," Mr. Gautam Adani, Chairman of the Adani Group, stated. "Not only is India anticipated to remain one of the world's greatest demand-driven economies for several decades, but it is also the world's second-largest cement market despite having less than half of global average per capita cement consumption."

China's cement usage is more than seven times that of India. When these variables are joined with the Adani Group's ports and logistics company, energy business, and real estate business, we believe we will be able to establish a truly integrated and differentiated business model and position ourselves up for considerable capacity expansion."

"Holcim's worldwide leadership in cement production and environmental best practices, provides us some of the cutting-edge technology that will allow us to expedite the path to greener cement production," Mr. Adani continued. Furthermore, Ambuja Cements and ACC are two of the most well-known brands in India. When combined with our renewable energy generation footprint, we gain a significant advantage in the decarbonization path that is required for cement manufacturing. Because of the combination of all of our talents, I am convinced that we will be able to build the cleanest and most sustainable cement production methods that reach or surpass worldwide norms."

"I am happy that the Adani Group is purchasing our business in India to drive its next age of growth," stated Holcim Limited CEO Jan Jenisch.

With India's cement consumption at 242 kg per capita, compared to the world average of 525 kg per capita, the cement sector in India has substantial development potential. The tailwinds of rising urbanization, a growing middle class, and inexpensive housing, as well as post-pandemic recovery in construction and other infrastructure sectors, are likely to drive cement industry expansion over the next few decades.

Synergies with the entire Adani infrastructure platform will benefit both Ambuja and ACC, particularly in the areas of raw materials, renewable energy, and logistics, where Adani Portfolio firms have extensive experience and deep expertise. This will allow the two firms to increase their margins and return on capital utilized.

Adani's emphasis on ESG, Circular Economy, and Capital Management Philosophy will also help the Companies. Businesses will remain fully committed to the UN Sustainable Development Goals, with a particular emphasis 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 transaction is subject to regulatory approvals and conditions.