Shares of HeidelbergCement India surged up to 10% on January 27 as Moneycontrol reported, citing people familiar with the matter, that Aditya Birla Group’s flagship company UltraTech Cement is in advanced talks with German cement major Heidelberg to acquire its Indian-listed business.
Following the Moneycontrol article, HeidelbergCement India's shares rose as high as 10% to trade at Rs 242.5 apiece. However, the shares pared their gains subsequently and at 12:30 pm on January 27, they were trading 5.5% higher at Rs 227 apiece.
Top Aditya Birla group executives recently met the German cement maker’s global management to discuss the acquisition of HeidelbergCement India, the sources told Moneycontrol.
Heidelberg owns a 69.39 percent stake in the company, which is listed on the Indian stock exchanges. The stake was worth around Rs 3,381 crore at the stock’s closing price on January 24.
Moneycontrol reported on October 7 that Heidelberg had drawn interest from major Indian cement makers such as Adani group and JSW Cement as well as UltraTech. The Economic Times also reported on October 7 that Adani group had begun talks with Heidelberg for the acquisition of its India assets.
A controlling stake sale will trigger a mandatory open offer under SEBI’s takeover norms, for acquiring a 26 percent stake from public shareholders.
ALSO READ: UltraTech Cement in advanced talks to acquire HeidelbergCement India
UltraTech’s plans to acquire a controlling stake in Heidelberg comes as the country’s biggest cement maker steps up focus on inorganic growth amid consolidation in the cement industry triggered by Adani group’s $6.6-billion acquisition of Ambuja Cements and ACC Limited in 2022 from Lafarge-Holcim.
In 2024, UltraTech acquired a 55.49 percent stake in Chennai-based India Cements. It picked up a 22.7 percent stake in India Cements in June. On July 28, UltraTech Cement announced it would purchase another 32.72 percent stake for Rs 3,954 crore at Rs 390 a share.
Earlier this month, the company launched an open offer to acquire an additional 26 percent stake from public shareholders.
On December 27, UltraTech announced the acquisition of an 8.69 percent stake in Star Cement for Rs 851 crore.
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