Star Cement denied that it was involved in any takeover talks with Ambuja Cement, which is controlled by the Adani Group, and denied that the media allegations were hypothetical. “We hereby clarify that the above mentioned news item is speculative and the company is not engaged in any discussions in this regard,” stated Star Cement in a regulatory filing. In accordance with our duties under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we have always made disclosures and will do so in the future.
According to earlier media reports, Ambuja Cement is negotiating to buy Star Cement as part of its development plan. The article further stated that although the specifics of the purchase were unknown, it was discovered through sources that the group had hired the consulting company EY to assess the offer. In the northeast, Star Cement holds the largest market share. With four grinding units and a 1.67-MTPA integrated cement factory in Meghalaya, the company’s total installed capacity is 7.7 million tonnes per annum (MTPA). By 2030, the business wants to increase its capacity to 25 MTPA.
The study was released at a time when the cement industry was seeing a huge number of mergers and acquisitions, and Adani Group was steadily growing its position in the market and gaining market share. Adani Group became the biggest cement operator in India after UltraTech in September 2022 when it paid $6.4 billion to purchase two of the biggest cement businesses in the nation, ACC and Ambuja Cement.
At an enterprise value of Rs 5,185 crore, the Adani Group also purchased Sanghi Industries later in December 2023. Internal accruals were used to finance the full purchase. For an enterprise value of Rs 10,422 crore, the conglomerate purchased a 100% share in Penna Cement Industries Ltd (PCIL) in June of this year. Adani’s plan to reach a capacity of 140 million tonnes per year (MTPA) by 2028 included the purchase.
