Ambuja Cements Ltd Board approves amalgamation of ACC Limited and Orient Cement Limited

In a significant development for India's cement sector, Ambuja Cements Limited, part of the Adani Group, has received approval for two separate Schemes of Amalgamation from its Board of Directors to merge ACC Limited and Orient Cement Limited, establishing a single consolidated 'One Cement Platform'.

Mr. Karan Adani, Non-Executive Director - Ambuja Cements Limited, Adani Group, said, "This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation. By bringing Ambuja Cements, ACC, and Orient Cement under a single corporate structure, we are strengthening our ability to drive operational excellence, accelerate growth, and deliver sustainable long-term value. This merger builds on our already proven track record to further position the business to drive efficiency and productivity. A robust and resilient balance sheet positions the unified strong entity to effectively support future growth initiatives."

This consolidation is a major step for Adani Group's cement business, creating an integrated and stronger entity with greater scale, efficiencies, and financial strength.

1. Operational and Financial Synergies: The merger will unlock greater operational efficiencies, optimise manufacturing and logistics, and enable efficient capital deployment. These improvements will boost profitability, support capacity expansion, and enhance long-term shareholder returns.

2. Simplified Corporate Structure: The amalgamation eliminates structural duplication, reduces administrative costs, and enables faster, more agile decision-making. In addition, there will be no specific MSA required with ACC, Orient, Penna & Sanghi as these subsidiaries will become an integral part of Ambuja Cements.

3. Strong and Debt-Free Balance Sheet: This initiative aligns with Ambuja Cements' strategic plan to increase cement production capacity from 107 MTPA to 155 MTPA by FY28, facilitating efficient capital allocation and prompt adaptation to market requirements.

4. Direct Shareholding in a Stronger Entity: This strategic amalgamation is not just a merger of companies; it is a powerful step forward for shareholders, offering direct participation in a stronger, more agile, and future-ready leader in the cement industry.

5. Enhanced Scale and Market Leadership: The proposed amalgamation brings together two of India's most established and trusted cement brands (i.e. Ambuja & ACC) under one unified corporate structure. The 'Adani Ambuja Cements' & 'Adani ACC' brands will continue to operate as usual, with their leading product brands in respective markets.

6. Stakeholder-Centric Approach: The Scheme of Amalgamation of Sanghi Industries and Penna Cement with Ambuja are also at different stages of approval. Post approvals, all stakeholders will engage with a single, unified company.

7. Unified ESG Leadership: The merged entity will benefit from a consolidated ESG framework to accelerate renewable energy adoption, low-carbon cement solutions, and sustainable practices.

Advisors for the abovesaid transactions: M/s GT Valuation Advisors Pvt. Ltd. & M/s BDO Valuation Advisory LLP, registered valuers are the independent joint valuers, M/s IDBI Capital Markets & Securities Ltd. and M/s SBI Capital Markets Ltd. have provided opinions on fairness of the joint valuations, M/s Cyril Amarchand Mangaldas and M/s Singhi & Co. are legal advisors.

Shares of ACC Limited was last trading in BSE at Rs. 1775.80 as compared to the previous close of Rs. 1752.65. The total number of shares traded during the day was 23448 in over 1565 trades.

The stock hit an intraday high of Rs. 1789.90 and intraday low of 1756.75. The net turnover during the day was Rs. 41536600.00.

Shares of Ambuja Cements Limited was last trading in BSE at Rs. 540.00 as compared to the previous close of Rs. 539.70. The total number of shares traded during the day was 36124 in over 2381 trades.

The stock hit an intraday high of Rs. 545.35 and intraday low of 538.70. The net turnover during the day was Rs. 19562736.00.

Shares of Orient Cement Limited was last trading in BSE at Rs. 163.85 as compared to the previous close of Rs. 161.85. The total number of shares traded during the day was 10569 in over 225 trades.

The stock hit an intraday high of Rs. 164.55 and intraday low of 161.90. The net turnover during the day was Rs. 1729521.00.

Source : Equity Bulls

Keywords

AmbujaCements INE079A01024 ACC INE012A01025 OrientCement INE876N01018 Merger