Ambuja Cements Mega-Merger: ACC and Orient Consolidation Explained

Consolidation into “One Cement”: Adani’s Strategic Power Move

The thing is, the Adani Group is officially consolidating its cement empire. On Wednesday, December 24, 2025, Ambuja Cements and Orient Cement saw their share prices climb following the board’s approval of a massive merger plan.

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Actually, the goal is to fold ACC Ltd, Orient Cement, Penna Cement, and Sanghi Industries into Ambuja Cements, creating a “One Cement” platform with a total capacity of 107 million tonnes per annum (MTPA). Instead of multiple listed entities, Ambuja will eventually be the primary vehicle for the group’s goal of reaching 155 MTPA by FY28.

And here’s the kicker. While the market cheered for Ambuja, ACC shares actually slipped.

Specifically, analysts from Citi noted that the swap ratio implies a 1% discount to ACC’s recent closing price, which explains the lackluster trading in that specific stock. In fact, Orient Cement shareholders are the big winners here, as the deal offers them roughly a 9% premium. As a result, Ambuja Cements shares rose over 1% to an intraday high of ₹553.40, while ACC traded roughly 0.65% lower.

[Table: Proposed Share Swap Ratios]

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The thing is, the rationale behind this is all about “operational synergies.” Basically, management expects to save at least ₹100 per tonne in costs. In fact, HSBC and Macquarie analysts have called the move a structural positive, noting it simplifies the corporate hierarchy and allows for better capital allocation.

Instead of competing internally, the brands will now share logistics and procurement networks. Consequently, the Adani Group is narrowing the gap with industry leader UltraTech Cement, which currently sits at roughly 183 MTPA.

Actually, there are still risks to watch. Specifically, Macquarie flagged potential headwinds like intense pricing competition and weak cement demand in certain regions.

And then Y followed. Even though the brands (Ambuja and ACC) will continue to exist in the market to maintain customer loyalty, the legal and financial backbone will be unified. Consequently, the merger process is expected to take about 12 to 15 months to fully conclude, pending NCLT and shareholder approvals.

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