Ambuja Cement finished acquiring a 37.8% promoter stake in Orient Cement Ltd (OCL) to establish itself as the new promoter of the CK Birla group company. Through this strategic acquisition Ambuja Cement continues its expansion strategy under the Adani Group umbrella.
Ambuja Cement acquired 7.76 crore equity shares from the promoter group to boost its ownership of Orient Cement to 46.66%. Ambuja Cement acquired 1.82 crore shares amounting to 8.87% of the company’s equity from public shareholders in addition to the promoter stake. The finalized transactions give Ambuja Cement complete control over Orient Cement.
Orient Cement made the announcement through a regulatory filing which confirmed Ambuja Cement’s transition to the promoter role after acquiring the necessary shareholding. The total deal value of ₹8,100 crore was announced by Ambuja Cement when they first made the acquisition announcement in October last year.
The acquisition strengthens Ambuja Cement’s market position and operational network throughout India by expanding its reach in central and southern regions where Orient Cement operates. The industry analysts predict that this merger will create improved operational synergies and cost reduction benefits which will enhance Ambuja Cement’s market position in the construction materials industry.
The construction and infrastructure industry growth enables Ambuja to expand its operations while demonstrating the Adani Group’s strategic move to increase its cement business influence.
