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The JSW group has offered $ 7 billion to Swiss cement major Holcim to acquire Ambuja Cements and it’s subsidiary, ACC in India.
In an interview to FT, Sajjan Jindal said that JSW would offer $4.5 billion in its own equity and $2.5 billion from
undisclosed private equity partners for Ambuja Cement and ACC.
American private equity major Apollo has offered $1 billion to JSW for the acquisition, Business Standard reported earlier.
If successful, the acquisition would increase JSW’s market share of the Indian cement market from about 3 per cent to 16 per cent. Ambuja and ACC have a capacity of 64 million tonnes per annum.
Banking sources said JSW group will not be able to win the race as the Adani group has made an offer of more than $10 billion. The offer includes the open offers for the two listed entities in India. The Aditya Birla group is also in the race, but bankers said it will have to sell several units in Western India to get an approval from the Competition Commission of India.
Holcim is planning to announce the name of the winner before May 15 and the entire transaction, including the open offers, will be completed by March next year.
Bankers said that rising rates aound the world after the US Fed hike will impact the offers as interest rates offered by private equity funds for the deal are as high as 13 per cent.
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