Ambuja Cements announces the amalgamation of ACC Limited and Orient Cement Limited, creating a cement powerhouse. The merger aims to optimize operations, streamline structure, and enhance resource allocation. ACC shareholders will receive 328 Ambuja shares for every 100 shares, while Orient Cement shareholders get 33 Ambuja shares per 100. The appointed date is January 1, 2026 for ACC and May 1, 2025 for Orient Cement.
Strategic Merger Rationale
The merger of ACC and Orient Cement will establish a ‘One Cement Platform’, creating a pan-India cement powerhouse. This move will optimize manufacturing and logistics networks, streamline the corporate structure, and strengthen the balance sheet to support growth and market leadership.
Synergistic Benefits
The merger aims to simplify and rationalize the network, branding, and sales promotion, potentially improving margins by at least Rs. 100 per metric ton. It unifies manufacturing and supply chain functions, streamlining the group’s structure.
Share Exchange Ratio
For every 100 equity shares of ACC with a face value of Rs. 10 each, Ambuja Cements will issue 328 equity shares with a face value of Rs. 2 each to eligible shareholders of ACC.
For every 100 equity shares of Orient Cement with a face value of Re. 1 each, Ambuja Cements will issue 33 equity shares with a face value of Rs. 2 each to eligible shareholders of Orient Cement.
Key Advisors
Valuation: GT Valuation Advisors Pvt. Ltd and BDO Valuation Advisory LLP provided valuation advice.
Fairness Opinion: IDBI Capital Markets & Securities Ltd and SBI Capital Market Limited offered opinions on valuation fairness.
Legal Matters: Cyril Amarchand Mangaldas and Singhi & Co were legal advisors.
Appointed Dates
The appointed date for the merger of ACC Ltd. is January 1, 2026, while for Orient Cement Ltd., it is May 1, 2025.
Post-Merger Structure
Following the merger, all subsidiaries of ACC will become subsidiaries of Ambuja. The promoter and promoter group holding in Ambuja will be 60.94% from 67.65% post the approval of all ongoing and proposed merger schemes.
Production Capacity
Adani Cement currently has a capacity of 107 MTPA, including 24 integrated units and 22 grinding units.
Source: BSE
