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| Holcim buys a stake in Gujarat Ambuja Cements World number-two cement maker Holcim has acquired 14.8 percent stake in India's Gujarat Ambuja Cements Ltd. from the founder families for 21 billion rupees (USD 477 million) and offered to buy another 20 percent for $560 million. Thereafter Holcim will assume board and management control over Gujarat Ambuja. Last year, Holcim had bought 67 percent of Ambuja Cement India, a group firm of Gujarat Ambuja. Through this local holding company, Holcim acquired a majority in Ambuja Cement Eastern Ltd and a substantial stake in The Associated Cement Companies Ltd (ACC), the second largest cement group in India. The Sekhsaria and Neotia founder families have concluded a shareholders’ agreement with Holcim which defines the transfer of control over Gujarat Ambuja from the founder families to Holcim. Before board control can be transferred, in accordance with India’s takeover code Holcim is required to tender a public offer to all shareholders to acquire up to a further 20 percent of Gujarat Ambuja share capital. Founded in 1981, Gujarat Ambuja, India’s third largest cement producer, today owns four cement plants and two grinding stations with a total annual capacity of 14 million tonnes of cement. The company also runs terminals in Mumbai, Gujarat and Sri Lanka. Gujarat Ambuja operates mainly in northern and western India. India’s dynamic construction sector is being driven mainly by population growth and the rapid expansion of India’s infrastructure. At 125 kilograms per capita per year, cement consumption is currently among the lowest in Asia. Cement consumption of an estimated 136 million tonnes in 2005 is expected to grow by an average 8 to 9 percent in the coming years. write your comments about the article :: © 2006 Construction News :: home page |