Refuting media reports on acquisition talks with Adani Group-owned Ambuja Cement, Star Cement said that the reports are speculative and the company is not engaged in any such discussions.
In a regulatory filing, Star Cement said, “We hereby clarify that the above mentioned news item is speculative and the company is not engaged in any discussions in this regard. We have always made and will continue to make disclosures in compliance with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.”
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Earlier, media reports surfaced stating that Ambuja Cement is in talks to acquire Star Cement as a part of its expansion strategy. The details of the transaction, the report added, was yet to be known, but it was learnt from sources that the group has appointed consultancy firm EY for evaluating the deal.
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Star Cement has the highest market share in the north eastern region. The company’s total installed capacity stands at 7.7 million tonnes per annum (MTPA) with a 1.67-MTPA integrated cement plant in Meghalaya and four grinding units. The company aims to expand this capacity to 25 MTPA by 2030.
The report comes when the cement industry is witnessing an enormous number of merger and acquisition activities and Adani Group is continuously increasing its stake in the sector and strengthening its position in the industry. Adani Group had acquired two of the country’s largest cement companies, ACC and Ambuja Cement in September 2022 for $6.4 billion, making it the largest cement player in India after UltraTech.
Later in December 2023, Adani Group also acquired Sanghi Industries at an enterprise value of Rs 5,185 crore. The entire acquisition was funded through internal accruals.
In June this year, the conglomerate acquired 100 per cent stake in Penna Cement Industries Ltd (PCIL) for an enterprise value of Rs 10,422 crore.
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