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Ambuja Cements acquires Sanghi Industries in $600mn deal

The acquisition will result in the creation of India’s second largest cement maker

Ambuja Cements has announced that it has acquired Sanghi Industries in a deal worth US $600mn. The deal makes the company India’s second largest cement maker.

The firm said it is acquir­ing 57% of the shares in Sanghi from its fam­ily own­ers, with the com­pany val­ued at around $600mn after tak­ing into account debt and liquid assets. Sanghi has India’s largest plant for cement and clinker and pro­duces approximately six million tonnes of cement per year.

According to a report in the Financial Times, the deal is leveraging the firm’s own cash, as opposed to taking on debt to complete the transaction.

“We are optim­istic about the acquis­i­tion by Ambuja Cements, recog­nising it as a mutu­ally bene­fi­cial oppor­tun­ity for both of the share­hold­ers,” said Ravi Sanghi, Sanghi Indus­tries’ Chair and Man­aging Dir­ector.

India’s cement market is expected to increase due to Nar­en­dra Modi’s drive to improve infra­struc­ture.

Ambuja Cements, which is owned by the Adani Group, said it aimed to increase Sanghi’s pro­duc­tion to 15m tonnes per year. Its cur­rent assets pro­duce 67.5m tonnes a year, with a tar­get of 140m tonnes by 2028.


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