NewsOrders & DealsACC Shareholders Approve Merger With Ambuja Cements At 328:100 Exchange RatioACC Shareholders Approve Merger With Ambuja Cements At 328:100 Exchange Ratio
ACC Limited shareholders have approved the company's merger with Ambuja Cements Limited at a 328:100 share exchange ratio, forming part of a dual consolidation strategy that includes Orient Cement Limited. The unified platform targets capacity expansion from 107 MTPA to 155 MTPA by FY28, with cost optimization benefits of at least ₹100 per MT and simplified corporate structure eliminating operational duplication.
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ACC Limited shareholders have approved the company's amalgamation with Ambuja Cements Limited, confirming the 328:100 share exchange ratio previously announced by the Ambuja Cements board. This approval represents a crucial milestone in the dual merger scheme that will create a unified "One Cement Platform" within the Adani group's cement operations.
Merger Approval and Share Exchange Details
The amalgamation scheme, originally approved by Ambuja Cements' board on December 22, has now received ACC shareholder approval. Under the approved terms, Ambuja Cements will issue 328 shares for every 100 shares held in ACC Limited.
| Parameter: | ACC Merger Details |
|---|---|
| Share Exchange Ratio: | 328:100 (Ambuja:ACC) |
| ACC Share Face Value: | ₹10.00 each |
| Ambuja Share Face Value: | ₹2.00 each |
| Appointed Date: | January 1, 2026 |
| Regulatory Status: | Subject to NCLT and statutory approvals |
Dual Merger Strategy
The ACC merger forms part of Ambuja Cements' comprehensive consolidation strategy, which includes a simultaneous merger with Orient Cement Limited at a 33:100 share exchange ratio. Both amalgamation schemes operate under Sections 230 to 232 of the Companies Act, 2013.
| Company: | Share Exchange Ratio | Appointed Date |
|---|---|---|
| ACC Limited: | 328:100 (Ambuja:ACC) | January 1, 2026 |
| Orient Cement Limited: | 33:100 (Ambuja:Orient) | May 1, 2025 |
Strategic Benefits and Capacity Expansion
The consolidation is designed to deliver significant operational synergies and cost optimization benefits. Karan Adani, Non-Executive Director of Ambuja Cements Limited, emphasized: "This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation."
| Benefit Category: | Target Improvements |
|---|---|
| Cost Optimization: | Margin improvement of at least ₹100.00 per MT |
| Capacity Expansion: | Target increase from 107 MTPA to 155 MTPA by FY28 |
| Network Rationalization: | Simplified branding and sales promotion spends |
| Corporate Structure: | Elimination of structural duplication |
Combined Operational Capacity
Post-merger, the unified entity will operate significant manufacturing capacity across multiple regions, with ACC contributing 40.40 MTPA to the combined 107.00 MTPA current capacity.
| Region: | ACC Capacity (MTPA) | Combined Total (MTPA) |
|---|---|---|
| Central: | 7.10 | 9.60 |
| East: | 11.60 | 23.50 |
| North: | 8.70 | 19.30 |
| South: | 10.10 | 29.40 |
| West: | 2.90 | 24.50 |
| Total ACC Contribution: | 40.40 | 107.00 |
Regulatory Timeline and Next Steps
The merger schemes will be filed with stock exchanges for obtaining No Objection Letters as required under Regulation 37 of SEBI Listing Regulations. Subject to requisite approvals including creditors, SEBI, and NCLT, the transactions are expected to be completed over the next twelve months. No Competition Commission of India approval is required as these are intra-group mergers.
The unified entity will continue operating the established Adani Ambuja Cements and Adani ACC brands in their respective markets, ensuring continuity while benefiting from enhanced operational scale and financial strength.
Historical Stock Returns for Ambuja Cements
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.78% | -4.06% | +1.51% | -9.23% | -0.20% | +98.91% |
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