• | 5:30 pm

UltraTech Cement in talks to buy HeidelbergCement: report

Indian cement maker is planning to acquire a 69.39% stake held by Heidelberg Materials Group in HeidelbergCement India, valued at about $390 million

UltraTech Cement in talks to buy HeidelbergCement: report
[Source photo: Chetan Jha/Press Insider]

Aditya Birla Group’s UltraTech Cement Ltd is in advanced talks to buy the Indian operations of Germany’s HeidelbergCement, Moneycontrol reported, citing people in the know.

The Indian cement maker is planning to acquire a 69.39% stake held by Heidelberg Materials Group in HeidelbergCement India Ltd, valued at Rs3,381 crore about ($390 million), based on the closing price of shares as on 24 January, Moneycontrol reported.

In a statement to the exchanges, HeidelbergCement India Ltd said it had clarified to the news platform that “it does not respond or comment to any market rumors.”

“Further, we reassure you that the company has been regularly making disclosure(s)…from time to time and has not withheld any material information/event that may impact the share price or the trading volume,” it added.

On Tuesday, shares of HeidelbergCement India were down 3.81% on BSE Ltd from the previous day’s close to Rs218.25, while those of UltraTech Cement were little changed.

With this acquisition, UltraTech plans to achieve inorganic growth amid increasing competition in the cement sector in India. The company recently held meetings with Heidelberg as part of ongoing negotiations, the report said.

HeidelbergCement India operates under the MyCem Cement brand and reportedly began exploring potential buyers last October.

HeidelbergCement India entered the Indian market in 2006 through the acquisition of a stake in Mysore Cements. It later formed a joint venture with Indorama Cement before acquiring it in 2008.

In 2009, Indorama Cement merged with Mysore Cements and the resulting entity was rebranded HeidelbergCement India Ltd.

UltraTech has previously made a series of strategic acquisitions to boost its market position.

Last year, it acquired a 55.49% stake in India Cements through several transactions, including an open offer to public shareholders.

In December, the company purchased an 8.69% stake in Star Cement for Rs851 crore.

More Top Stories: