Ambuja Cements’ Board has approved the amalgamation of ACC Limited and Orient Cement Limited, creating a consolidated ‘One Cement Platform’. This move strengthens the company’s ability to drive operational excellence and growth. The merger aims to optimize manufacturing and logistics, streamline corporate structure, and facilitate efficient capital allocation. The transaction is expected to be completed over the next year, subject to approvals.
Merger Overview
Ambuja Cements Limited has received approval for the amalgamation of ACC Limited and Orient Cement Limited. This initiative will establish a single consolidated ‘One Cement Platform’. The decision was made by the Board of Directors on December 22, 2025.
Strategic Benefits
The amalgamation is expected to deliver several strategic benefits:
- Operational Synergies: Optimizing manufacturing and logistics for greater efficiencies and efficient capital deployment.
- Simplified Structure: Eliminating structural duplication and reducing administrative costs.
- Strong Balance Sheet: Supporting Ambuja Cements’ plan to increase cement production capacity to 155 MTPA by FY28.
Key Terms
The merger involves the following share issuance:
- For every 100 equity shares of ACC (face value of Rs. 10 each), Ambuja will issue 328 equity shares (face value of Rs. 2 each).
- For every 100 equity shares of Orient Cement (face value of Re. 1 each), Ambuja will issue 33 equity shares (face value of Rs. 2 each).
Expected Timeline
Subject to necessary approvals, the transaction is expected to be completed over the next year.
Management Commentary
Mr. Karan Adani stated that this consolidation represents a transformational step towards building a globally competitive, integrated cement and building materials organization. By consolidating Ambuja Cements, ACC, and Orient Cement, the company aims to strengthen its ability to drive operational excellence, accelerate growth, and deliver sustainable long-term value.
Additional Points
Other ongoing amalgamations:
- Scheme of Amalgamation of Sanghi Industries with Ambuja.
- Penna Cement with Ambuja.
Both of these are at different stages of approval.
Source: BSE