UltraTech Cement Eyes Acquisition of HeidelbergCement India

According to reports, the flagship cement producer of India, UltraTech Cement, has approached HeidelbergCement India Ltd with an offer of its acquisition. According to a recent report by one of India’s business dailies, it said that in discussions at a final stage. End.

The cement major from Germany, HeidelbergCement AG holds 69.39% interest in the cement company listed on Indian stock exchanges. At the closing price of the stock on January 24, that interest stood valued at ₹3,381 crore. HeidelbergCement is a potential acquisition that can enable UltraTech to strengthen its consolidation process within the Indian cement market.

According to sources, senior executives of the Aditya Birla Group have recently met with the global management of HeidelbergCement to settle details over the acquisition. The acquisition would also comprise a mandatory open offer under the takeover regulations of SEBI wherein UltraTech will be forced to make an open offer to purchase an additional 26% stake from the public shareholders.

This development comes at a time when other major players in the Indian cement industry are increasingly interested in HeidelbergCement India.

Reports in October 2024 highlighted interest from prominent competitors such as the Adani Group and JSW Cement, with the Adani Group reportedly initiating discussions with HeidelbergCement for its Indian assets.

The acquisition will support UltraTech Cement’s growth ambition as it looks to expand its footprint in India, which is an economy that should see sustained demand in construction and infrastructure. HeidelbergCement India’s existing facilities and market presence could provide significant synergies for UltraTech.

This deal will add to the slew of consolidation within the Indian cement space. There is definitely increased deal-making activity among companies in the last two years.” The two firms haven’t announced the deal on their websites so far.

HeidelbergCement India serves as an industry leader in the country, utilizing its global expertise to offer innovative cement sector solutions. The proposed deal highlights the great competition the cement manufacturing firms face as they continue to scramble for a larger slice of the Indian pie.