Swiss cement giant LafargeHolcim is taking into account selling out its businesses in India including Ambuja Cements Ltd, as per a report by Bloomberg. LafargeHolcim at present has a 63.1% stake in Ambuja and that stake is evaluated at $9.6 billion.
It’s just a speculation, a consideration not a concrete plan to sell its businesses upfront. The transaction might or might not be hhonouredas recently Ambuja’s shares played well in the markets and saw a rise of more than 20% in April itself. This growth is partly due to a potential acquisition.
Like any other company trying to reduce its debt due to the pandemic so did LafargeHolcim. It has been cutting costs to reduce its debts by giving away verticals that were of least importance to its line of business and actively branched out to merge. It already gave away its Brazilian portion for $ 1 billion last September and is considering doing away with its Zimbabwe unit as well.
LafargeHolcim gave its heads up to Malarkey Roofing Products and Firestone Building Products in early 2021, with the addition of construction verticals by their CEO Jan Jenisch apart from the conventional cement business.
Ambuja Cement Ltd was incepted in 1983 and has a production capacity of whopping 31 million metric tons. Pan India, as per its official website, has 8 cement grinding installations and 6 manufacturing units. Its sister concern is ACC Ltd which is traded publicly.
