Ambuja Cements to acquire majority stake in Sanghi

2 Aug 2023 , 10:51 AM

According to news reports, Ambuja Cements has agreed to buy the majority of Sanghi Industries’ activities. This acquisition will strengthen the cement business of Gautam Adani’s company.

The reports stated that Ambuja would announce the transaction as early as Wednesday. The precise stake percentage was not disclosed.

According to one of the reports, the transaction took Sanghi’s enterprise worth of Rs 60 billion ($729 million) into account. Last week, the Indian Economic Times revealed that Adani was one of the companies dominating the competition to acquire Sanghi, which was valued at that enterprise value.

After UltraTech Cement, Adani is the country’s second-largest cement manufacturer. It owns Ambuja and its subsidiary ACC Ltd, which together have more than a dozen manufacturing facilities spread across India and a production capacity of more than 65 million tonnes.

One of the top cement producers in Gujarat is Sanghi. According to its website, it has a manufacturing capacity of 6.1 million metric tonnes annually.

Cement was a major area of interest for the Adani Group, and there were plans to investigate other greenfield opportunities, a representative for the company told Reuters in June.

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