The Competition Commission of India (CCI) on Friday said that it had approved the Adani Group’s acquisition of Ambuja Cements and ACC from Switzerland’s Holcim.
The two companies were acquired in a $10.5-billion (Rs 81,339 crore) transaction in May, making Adani the second-largest cement player in India after Ultratech.
The competition watchdog said the approval was granted to Endeavour Trade and Investment, which is a special purpose vehicle (SPV), set up in Mauritius and controlled by the Adani family.
The SPV had executed the agreement in May to buy the entire shareholding of the offshore promoter, Holderind Investments, which is part of the Holcim group.
Holcim held 63.19 per cent stake in Ambuja Cements and 54.53 per cent in ACC (of which 50.05 per cent was held through Ambuja Cements). This acquisition was for Rs 50,200 crore.
Subsequently, the SPV made two open offers to pick up 26 per cent each in Ambuja Cements and ACC for a combined Rs 31,139 crore. This transaction would take the SPV’s stake in the two companies to 89.11 per cent and 80.53 per cent.
Source: Business-Standard