In an intriguing development, the Adani Group's Ambuja-ACC is inching closer to acquiring Sanghi Cements, with negotiations advancing and terms improving in favor of the Adani conglomerate. According to sources familiar with the matter, Ambuja-ACC and JK Lakshmi Cement are leading contenders in the race to secure Ahmedabad-based Sanghi Cement, as reported by ET earlier this July.
The Adani group appears to be closing in on meeting the anticipated enterprise value of approximately Rs. 6,000 crore demanded by Sanghi Cement's promoters. However, JK Lakshmi Cement, while also competing, has yet to meet the stipulated enterprise value, which takes into account an associated debt of roughly Rs. 2,000 crore.
Industry insiders reveal that negotiations remain in progress, and both teams are diligently working to finalize the deal. The discussion centers around the enterprise value, encompassing the significant debt attached to the transaction.
While Ambuja-ACC's progress in this venture continues to be a subject of interest, other industry players have also expressed their interest. Nirma Group and Dalmia Bharat, who had submitted acquisition proposals, are no longer actively participating in the competition.
The Adani Group's strong presence across various sectors, including coal, power, and logistics, is anticipated to yield cost synergies and reduce production expenses, bolstering the overall business profile of Ambuja Cements and ACC. Notably, both Ambuja Cements and ACC maintain a debt-free status and boast robust liquidity, further fortifying their market position and risk profile in the medium term.
Furthermore, Adani's strategic vision for Ambuja-ACC entails substantial expansion, with plans to elevate cement capacities from the current 67.5 million tonnes per annum to a remarkable 140 million tonnes per annum by 2028. This ambitious strategy aims to solidify Ambuja-ACC's stature as a prominent player within India's thriving cement sector.
The saga surrounding this potential acquisition has captured market attention, with Ambuja Cements registering a significant increase in EBITDA of 55% for the quarter ended June. The success of the Adani Group's portfolio diversification and strategic investments continues to shape industry dynamics, raising anticipation about the potential trajectory of Ambuja-ACC's growth in the days ahead.
