Adani-Owned Ambuja Cements To Acquire Majority Stake In Sanghi Industries: Report

Adani-owned Ambuja Cements is all set to buy a majority stake in operations of Sanghi Industries, according to a report by Reuters. This will help the Adani group to strengthen in the cement industry.

The deal was finalised by considering Sanghi Industries value at $60 billion. However, both the companies are likely to make an official announcement today, August 2, as per Reuters report. Also, the exact stake percentage and transaction amount will also be announced.

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The shares of Ambuja Cement ended 0.25% lower at ₹461.60 apiece on BSE on Tuesday. Its value has declined by 12.32% YTD and by 22.99% in the last one year. Ambuja Cement shares also tend to remain in limelight on Wednesday.

An Economic Times report had earlier revealed that Adani is the frontrunner in the race to acquire Sanghi, which was being appraised at that enterprise value.

Adani is India's second largest cement producer, behind UltraTech Cement, owns two cement companies Ambuja Cement and ACC Ltd. with a combined capacity of producing more than 65 million tonnes and more than a dozen manufacturing plants across India.

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According to media reports, Sanghi holds a production capacity of 6.1 million metric tonnes per annum and enjoys a dominant position in Gujarat. Sources were further quoted as saying by Reuters that cement was a key focus area and there were plans to explore multiple greenfield opportunities.