Aditya Birla Group’s flagship company UltraTech Cement, the biggest cement manufacturer in the country, is in advanced talks with German cement major Heidelberg to acquire its Indian listed business, HeidelbergCement India Ltd.
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.
Heidelberg had drawn interest from major Indian cement makers such as Adani group and JSW Cement as well as UltraTech. A controlling stake sale will trigger a mandatory open offer under SEBI’s takeover norms, for acquiring a 26 percent stake from public shareholders.
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.
