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Holcim sells its business in India for 6.4 billion francs

The transaction includes Holcim’s 63.11% stake in Ambuja Cement, which in turn owns a good 50% of ACC, as well as Holcim’s direct stake in ACC (4.48%). Adani is offering 385 Indian rupees per Ambuja Cement share and 2300 rupees per ACC share, which represents a total of 6.4 billion francs.

Quoted in the press release published on Sunday, Holcim boss Jan Jenisch sees Adani as “the perfect new owner” for the group’s business in India. This group’s portfolio ranges from infrastructure to energy.

Ambuja Cement and ACC, both listed on the Bombay Stock Exchange, own a total of 31 cement factories and 78 transport concrete factories. The workforce amounts to 10,700 employees.

The sale of the cement company Ambuja and the shares more or less directly held in its counterpart ACC, as well as the emphasis placed on the field of building roofing or insulation, in no way augurs an abandonment of cement production. , according to management.

Once finalized, probably during the second half of 2022, the transaction will however allow the multinational now from Zug to drastically decarbonize this segment of activity. Indian business alone accounts for 26% of the group’s carbon dioxide emissions.

“Solutions and Products”

Holcim intends to focus on the “Solutions & Products” area, a sector in which the group has invested nearly 5 billion francs recently. This unit should represent 30% of the group’s revenues by 2025. During a conference call on Monday, Jan Jenisch mentioned a dozen potential acquisition targets.

In terms of accounting, finance manager Géraldine Picaud has articulated a gain of 1.5 to 2.0 billion francs. The final amount will depend on the rate of the Indian rupee at the time of finalizing the transaction.

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After India, which had already been the subject of persistent rumors in recent weeks, Holcim must now settle the question of its presence in Russia. Mr. Jenisch said he had received many expressions of interest in the cement works and quarries put up for sale at the end of March and which employ a thousand people in this country. However, the process has not yet been completed, acknowledged the CEO.

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