ArcelorMittal intends to acquire Holcim's stake at over $10 bn
Cement

ArcelorMittal intends to acquire Holcim's stake at over $10 bn

The stake of Holcim Group in Ambuja Cement and ACC Cement combined has intensified, with ArcelorMittal showing interest in acquiring the asset valued at over $10 billion.

ArcelorMittal emerged as a formidable contender in Holcim Group. Its entry into the cement business will enable ArcelorMittal to establish brand recognition in India and complement the steel business.

Holcim can extract a premium from the new entrants into the cement business as it will make it the second-largest producer in India.

Ambuja Cement and ACC have a combined production capacity of 66 million tonnes per annum (mtpa), which will increase to 80 mtpa after completing the ongoing expansion projects.

Holcim holds a 63% stake in Ambuja Cement and a 50.05% stake in ACC.

Since September, Holcim has been selling its non-core assets and divested its Brazilian unit for $1 billion.

Ambuja Cement reported a 30% decline in the March quarter, with net profit at Rs 856 crore, compared to Rs 1,228 crore, even as its income increased 3% to ₹7,990 crore from Rs 7,812 crore.

The net profit of ACC was down by 30% to ₹396 crore from Rs 563 crore, while its net sales increased by 3% to Rs 4,322 crore from Rs 4,213 crore.

ArcelorMittal is competing with other firms, including Adani Cement and JSW Group, for acquiring Holcim stakes. Other players are UltraTech Cement and Shree Cement.

JSW Group has offered $4.5 billion in its own equity share and $2.5 billion jointly with private equity partners.

ArcelorMittal, with the acquisition of Essar Steel assets, has been bullish on investment in India. This year in March, it entered into a strategic partnership with Greenko Group to develop a 975 MW renewable energy project at Rs 4,570 crore in Andhra Pradesh.

This project is estimated to complete in two years. After completion, it will provide uninterrupted green energy to ArcelorMittal Nippon Steel (AM/NS) India for 25 years.

Image Source

Also read: Holcim Group to sell Ambuja Cement and ACC Ltd

The stake of Holcim Group in Ambuja Cement and ACC Cement combined has intensified, with ArcelorMittal showing interest in acquiring the asset valued at over $10 billion. ArcelorMittal emerged as a formidable contender in Holcim Group. Its entry into the cement business will enable ArcelorMittal to establish brand recognition in India and complement the steel business. Holcim can extract a premium from the new entrants into the cement business as it will make it the second-largest producer in India. Ambuja Cement and ACC have a combined production capacity of 66 million tonnes per annum (mtpa), which will increase to 80 mtpa after completing the ongoing expansion projects. Holcim holds a 63% stake in Ambuja Cement and a 50.05% stake in ACC. Since September, Holcim has been selling its non-core assets and divested its Brazilian unit for $1 billion. Ambuja Cement reported a 30% decline in the March quarter, with net profit at Rs 856 crore, compared to Rs 1,228 crore, even as its income increased 3% to ₹7,990 crore from Rs 7,812 crore. The net profit of ACC was down by 30% to ₹396 crore from Rs 563 crore, while its net sales increased by 3% to Rs 4,322 crore from Rs 4,213 crore. ArcelorMittal is competing with other firms, including Adani Cement and JSW Group, for acquiring Holcim stakes. Other players are UltraTech Cement and Shree Cement. JSW Group has offered $4.5 billion in its own equity share and $2.5 billion jointly with private equity partners. ArcelorMittal, with the acquisition of Essar Steel assets, has been bullish on investment in India. This year in March, it entered into a strategic partnership with Greenko Group to develop a 975 MW renewable energy project at Rs 4,570 crore in Andhra Pradesh. This project is estimated to complete in two years. After completion, it will provide uninterrupted green energy to ArcelorMittal Nippon Steel (AM/NS) India for 25 years. Image Source Also read: Holcim Group to sell Ambuja Cement and ACC Ltd

Next Story
Infrastructure Urban

Larsen & Toubro Secures Contract from Defence Ministry

The Ministry of Defence, Government of India, has awarded a significant contract to Larsen & Toubro (L&T) for supplying K9 Vajra-T Artillery Platforms to the Indian Army. As per the company's project classification, the contract is valued between Rs 50 billion and Rs 100 billion. The K9 Vajra-T, a 155 mm, 52-calibre tracked self-propelled artillery platform, is an adaptation of the globally renowned South Korean K9 Thunder howitzer. It has been co-developed by L&T and Hanwha Aerospace to meet the Indian Army's specific operational needs across diverse terrains, including deserts, plains, and..

Next Story
Real Estate

Delhi-NCR Housing Market sees 25% Sales Growth

The Delhi-NCR property market has maintained its momentum during the December quarter, with housing sales and new supply estimated to grow by 25 per cent and 59 per cent, respectively, as reported by PropEquity. Data from the real estate analytics firm suggests that housing sales in Delhi-NCR are likely to rise to 12,915 units during the October-December period of this year, compared to 10,354 units in the corresponding period of the previous year. New supply in the region is expected to increase significantly, reaching 11,223 units, a 59 per cent rise from 7,072 units in the year-ago quarter..

Next Story
Infrastructure Urban

DDC Approves Five Key Projects Under Kasaragod Development Package

The District Development Committee (DDC) has approved a budget of Rs 100.08 million for five key projects under the Kasaragod Development Package. This funding is part of the Rs 700 million allocated in the State budget for the 2024-25 financial year, with administrative approval formally amended to incorporate these initiatives. The decision was made during a meeting chaired by District Collector K. Inbasekar on Saturday, December 21. The approved projects include Rs 40.99 million for constructing Udayapuram Thungal Road in Kottom Belur grama panchayat and Rs 20.56 million for setting up a ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000