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Ambuja proposal to buy 24% in Holcim

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The Cabinet Committee on Economic Affairs (CCEA) has paved the way for Ambuja Cements to acquire a 24 per cent stake in its holding company, Holcim (India), a move which would lead to an outflow of Rs 3,500 crore from India and be a precursor to a reverse merger through a share swap. The reverse merger was also given a go-ahead by the CCEA.

The proposal allows Ambuja Cements to buy stake from Holderind Investment Limited.

The proposal was something applied for in 2013, but it has been cleared in the immediate aftermath of the conclusion of sale of Lafarge India assets to Nirma. Industry watchers are already wondering if this is just a mere coincidence or if there is more to it than meets the eye.

These transactions would enable LafargeHolcim Group to create a linear corporate structure (with Ambuja and ACC becoming parent and subsidiary) with a view to harvesting significant synergies from India operations.

"This will further strengthen all India footprints, debt-free balance sheet and cash flow generation, bringing in huge prospects for further expansion and creation of employment opportunities," a government statement said.

According to a complex arrangement announced in August 2013 by Holcim, in a two-step process, Ambuja Cements was to acquire 24 per cent in Holcim India – a wholly owned financial holding company of Holcim – for Rs 3,500 crore – followed by a stock merger between the two.

Currently, Holcim India directly holds 9.76 per cent stake in Ambuja and 50.01 per cent in ACC.

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Concrete

Holcim UK drives sustainable construction

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Holcim UK has released a report titled ‘Making Sustainable Construction a Reality,’ outlining its five-fold commitment to a greener future. The company aims to focus on decarbonisation, circular economy principles, smarter building methods, community engagement, and integrating nature. Based on a survey of 2,000 people, only 41 per cent felt urban spaces in the UK are sustainably built. A significant majority (82 per cent) advocated for more green spaces, 69 per cent called for government leadership in sustainability, and 54 per cent saw businesses as key players. Additionally, 80 per cent of respondents stressed the need for greater transparency from companies regarding their environmental practices.

Image source:holcim

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Concrete

GCCA releases LCR system

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The Global Cement and Concrete Association (GCCA) has launched the Low Carbon Ratings (LCR) system for cement and concrete, a new global rating based on products’ carbon footprints. The system uses a clear AA to G scale to help customers prioritise sustainability in material selection across construction sectors worldwide. The GCCA says that the LCR system is designed to be easily recognisable, with a simple visual graphic that indicates a product’s rating and provides consistency and comparability to other products.

Image source:highways.today

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Concrete

FLSmidth opens eco-friendly plant in Casablanca

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FLSmidth has inaugurated a €21 million mill liner manufacturing plant in Casablanca, covering 11,250m² with a production capacity of 6,500 tonnes annually. The LEED-certified facility significantly reduces carbon emissions by up to 56 per cent and fully recycles water used in the manufacturing process. Up to 250 jobs will be created in the Valparaíso region. Mikko Keto, CEO, highlighted the plant as a symbol of FLSmidth’s commitment to sustainable mining and community engagement in South America. Earlier in 2024, the Denmark-based company announced plans to sell its cement division to sharpen its focus on mining operations.

 

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