Adani-Holcim deal: Analysts expect Ambuja and ACC to merge in medium-term

Adani-Holcim deal: The merger of Ambuja Cement and ACC will help Adani Group rationalise a lot of fixed cost quotients at both these entities, analysts said

After billionaire Gautam Adani's acquisition of Swiss cement major Holcim's stake in Ambuja Cements and its subsidiary ACC for $10.5 billion (around Rs 81,361 crore), analysts believe the next logical step might be to merge the two companies, although only in the medium-term. Besides, other cost and expansion benefits may also emerge in the medium-to-long term, they say.

"Having acquired some of the jewels of the Indian cement industry, Adani may consider the merger of Ambuja Cement and ACC as it will help them rationalise a lot of fixed cost quotients at both these entities," said Vaibhav Agarwal