Gautam Adani’s son Karan Adani to oversee recently acquired cement businesses
As per a report by the news agency Bloomberg on Friday, the Adani Group‘s recently acquired cement businesses will be managed by Karan Adani, the eldest son of Gautam Adani, the third-richest person in the world. The Adani Group purchased ACC and Ambuja Cement, two significant Indian cement giants, for $10.5 billion in May of this year with the intention of integrating the two businesses.
35-year-old Karan Adani is the current CEO of Adani Ports and Special Economic Zone Ltd. Karan Adani has so far honed his skills in the Rs 15,934 crore port industry, the nation’s largest commercial port and the one that handles nearly one-fourth of its cargo. With ports, logistics, and SEZ included, their entire port business is now positioned as an integrated player for the corporate sector. Since Karan became CEO in January 2016, the business has undergone transformation.
Cement is undoubtedly the next significant portfolio that has been brought under Karan Adani’s control. Karan Adani has been managing the Group’s port business for the last 15 years. According to people familiar with the situation, besides posting Karan, Gautam Adani also intends to recruit other important senior executives to help grow the cement business and mentor his son.
Karan Adani is expected to create an integrated logistics company by identifying synergies between the group’s ports and cement businesses. They added that there might be a Friday announcement regarding his appointment. The Adani Group has opted not to comment on the situation.
The Recent Deal:
As per the deal, Ambuja Cements and ACC will each have 63.15% of the Adani Group’s ownership, respectively (of which 50.05 percent is held through Ambuja Cements). The combined market value of Ambuja Cements and ACC is $19 billion.
Adani’s biggest expenditure this year has been on cement. The billionaire created India’s second-largest cement producer by purchasing Ambuja Cements Ltd. and ACC Ltd. from Switzerland’s Holcim Ltd. in May with a 67.5 MTPA capacity. According to the agreement, Adani Group will pay Holcim, a company based in Switzerland, $6.4 billion in cash to purchase its 63.1% stake in Ambuja Cements Ltd. and its 54.5% stake in ACC Ltd. The remaining company shares will be acquired through an open offer.
Apart from this, in another significant development, Gautam Adani briefly held the title of second richest man in the world on Friday with a net worth of $155.5 billion (12.37 lakh crore). Although Bernard Arnault, CEO of Louis Vuitton, had surpassed him, he had to fight back for second place. Elon Musk, CEO of Tesla, is the richest person on earth.
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