Ambuja-ACC-Orient Cement Merger Explained: Key Details and What It Means for Shareholders

Mumbai | December 23, 2025

After a rapid expansion over the past three years, the Adani Group is now reworking the structure of its cement business. Ambuja Cements’ board has cleared proposals to merge ACC Ltd and Orient Cement Ltd into Ambuja, marking a decisive step toward operating the group’s cement assets under one listed entity.

The restructuring comes at a time when Adani’s cement portfolio has grown significantly through acquisitions. Since entering the sector in 2022 by acquiring Ambuja and ACC from Holcim, the group has added regional players such as Sanghi Industries, Penna Cement and Orient Cement. The latest move seeks to bring these assets under a simpler and more transparent framework.
The merger is also expected to strengthen its base for large-scale expansion, with plans to lift total capacity to 140 MTPA by 2028, narrowing the gap with industry leader UltraTech Cement. (183 MTPA).

Share Swap Details for Investors

As per the approved scheme of amalgamation, ACC shareholders will receive 328 Ambuja shares for every 100 ACC shares, valuing ACC at a marginal 0.3% discount to its market price.
Orient Cement shareholders will get 33 Ambuja shares for every 100 Orient shares, implying a 9% premium based on current prices.
The merger process is expected to conclude over the next year, with record dates yet to be announced.

Post-merger, Ambuja’s promoter holding will reduce from 67.7% to 60.9% due to the issuance of new shares.

How did the Stocks React

Ambuja Cements shares rose more than 4% to ₹563.5, touching a one-month high, while Orient Cement jumped nearly 10% to ₹179. ACC, however, slipped and traded around ₹1,752-1,780 as investors evaluated the merger ratios and valuation impact.

The gains in Ambuja and Orient reflect optimism over synergies and group consolidation, while ACC’s marginal fall indicates its shares being valued slightly below current market levels in the proposed swap.

Strategic Rationale: Building One Cement Platform

The consolidation is designed to simplify Adani’s cement structure and improve operational integration between its multiple subsidiaries — Ambuja, ACC, and Orient. The merged entity will operate as a single pan-India platform, helping reduce duplication in logistics, procurement, and branding.

According to company filings, the integration is expected to yield cost savings of ₹100 per tonne, driven by better capacity utilisation, streamlined supply chains, and centralised management. Ambuja’s nationwide footprint combined with ACC’s strong northern presence and Orient’s southern base positions the group for better geographic balance and efficiency.

Street View: Simplification Seen as Positive

Analysts welcomed the move, calling it a structural positive that simplifies Adani’s cement business and enhances governance. The merger is expected to eliminate cross-holdings, improve transparency, and create flexibility in capital deployment.
While ACC shareholders face a minor valuation discount, the deal is seen as value accretive for Ambuja, given stronger scale economics and improved margin potential.

PL Capital on Merger

Amnish Aggarwal of Prabhudas Lilladher said “The merger is directionally positive as it helps streamline operations and rationalise corporate overheads by bringing all cement entities under one umbrella. The valuation gap between Ambuja and ACC is limited, so the swap ratio appears broadly balanced. While Orient Cement may see some near-term benefit, the bigger upside for Ambuja is structural and long term, with the stock likely to move more on fundamentals and execution than on the merger headline.”

PL Capital maintains a Buy rating on Ambuja Cements with a target price of ₹718

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