The sale of Ambuja Cement and ACC by the Holcim group will be the country’s single-biggest outflow of foreign capital if Indian investors acquire the firms. As per reports, AV Birla, JSW Group, and Adani Group have shown interest in buying Holcim’s stakes.
Based on the share prices of Ambuja cement and ACC as of Friday, the combined value of Holcim’s stakes in them is Rs.48,620 crore. However, the deal is valued at Rs.79,200 crores ($10.35 billion) for Holcim’s stake in Ambuja Cement (63.19 percent) and ACC (4.48 percent), in addition to the 50.33 percent stakes Ambuja owns in ACC. So, any potential investor will have to make an open offer to buy 26 percent in both the companies from non-promoter shareholders.
As per an analyst, “$10 billion is a large amount, and if the deal goes through, it will impact India’s external sector such as the rupee exchange rate and overall capital inflow into the country.”
Nonetheless, the Switzerland-based Holcim Group did not make any official comment on the imminent deal. But in 2021, it had announced a portfolio transformation strategy, as it wanted to make strategic divestment and invest the proceeds in matured markets. Accordingly, it has gone in for a deal to exit the Brazilian market and has already sold its assets in Malawi, Zambia, and Madagascar.
Reference: Business Standard