Adani Group in talks to buy Heidelberg's Indian cement operations, ET reports (updated)

Heidelbergcement India

07/10/2024 04:24

(Adds details and context on Heidelberg's Indian operations,
cement industry in paragraphs 3, 5-9)
       BENGALURU, Oct 7 (Reuters) - The Adani Group is in talks
to buy the Indian cement operations of Germany's Heidelberg
Materials  HEIG.DE  in a deal that could be worth about $1.2
billion, the Economic Times reported on Monday, citing people
familiar with the matter.
    Adani Group, led by billionaire Gautam Adani, entered
India's cement sector in 2022 by buying Holcim's  HOLN.S  local
units and has made a string of acquisitions since then as it
jostles with top cement producer UltraTech Cement  ULTC.NS  for
market share.
    India's cement industry has seen increased deal-making since
the Adani Group's foray, and as government spending has boosted
demand from the housing and infrastructure sectors.
    Adani Group and Heidelberg did not immediately respond to
Reuters' requests for comment.
    UltraTech and IPO-bound JSW Cement were also in the race for
HeidelbergCement India  HEID.NS , The Hindu BusinessLine had
reported last year.
    Heidelberg Materials entered India in 2006 with a series of
domestic acquisitions and currently has four plants with a total
capacity of 12.6 million tonnes per annum, according to its
website.
    Heavy competition over the last few quarters has led to the
company losing market share in its mainstay central India
market.
        HeidelbergCement India posted its first profit drop in
five quarters in the three months to June as sales volume
declined and a price cut weighed. 
    The company sells cement under two brands, Mycem and Zuari.
    

 (Reporting by Chris Thomas and Nandan Mandayam in Bengaluru;
Editing by Mrigank Dhaniwala)
 ((chris.thomas@thomsonreuters.com;))