Ambuja Cements, part of Gautam Adani’s Adani Group, has applied for approval from the Competition Commission of India (CCI) to acquire a majority stake in CK Birla Group’s Orient Cement Ltd in a transaction valued at Rs 8,100 crore.
According to the CCI filing, the acquisition will proceed in two stages, beginning with two share purchase agreements (SPAs) signed on October 22, 2024. Initially, Ambuja Cements will acquire a 46.80% stake in Orient Cement, comprising a 37.90% stake from the current promoters and an additional 8.90% from public shareholders.
Under SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) rules, this share acquisition triggers a mandatory open offer for an additional 26% of Orient Cement’s expanded share capital. If the open offer is fully accepted, Ambuja Cements would hold up to 72.8% of Orient Cement.
In October, the Adani Group announced a binding agreement to acquire Orient Cement at an equity value of Rs 8,100 crore, adding 16.6 million tonnes per annum (MTPA) capacity to Adani Cement, which operates in the industry through Ambuja Cements. Ambuja currently operates 22 integrated plants, 10 bulk terminals, and 21 grinding units across India.
Orient Cement has manufacturing facilities in Telangana, Karnataka, and Maharashtra, with distribution in 10 states. Ambuja has asserted that the acquisition poses no competition risks, as CCI evaluates relevant markets, including grey cement production and sale in Telangana, Maharashtra, Karnataka, Madhya Pradesh, and Gujarat.
Additionally, CCI noted minor vertical links in services such as limestone, fly ash, clinker, and ready-mix concrete related to cement manufacturing, which Ambuja and Orient Cement believe present no competitive concerns. Earlier this year, Adani Group also acquired Penna Cement for Rs 10,422 crore, adding 14 MTPA to its capacity, solidifying its position as the country’s second-largest cement manufacturer.
Ambuja Cements Limited, a leading cement company in India and part of the Adani Group, which is known for its rapidly growing portfolio of diversified sustainable businesses, has played a significant role in shaping the Indian cement industry.
With its subsidiaries, Ambuja Cements has helped increase the Adani Group’s cement capacity to 89 MTPA, supported by 22 integrated manufacturing plants and 21 grinding units across the country. Recognized as one of ‘India’s Most Trusted Cement Brands’ by TRA Research in the Brand Trust Report 2024 and among ‘Iconic Brands of India’ by The Economic Times, Ambuja is known for its innovative, sustainable home-building solutions and eco-friendly practices.
The company pioneered a captive port with ten terminals, ensuring cost-effective and timely shipments of bulk cement. Its sustainable product range is also included in the GRIHA product catalogue, helping customers reduce their carbon footprints.
A leader in sustainable business practices, Ambuja Cements is ranked among ‘India’s Top 50 companies contributing to inclusive growth’ by SKOCH and has received an A- ‘Leadership Score’ by CDP for its efforts in climate change mitigation.
