UltraTech Cement in talks to buy HeidelbergCement India, Moneycontrol reports (updated)

Heidelbergcement India

27/01/2025 06:45

(Updates throughout with details from the Moneycontrol report, 
background and share price)
       Jan 27 (Reuters) - UltraTech Cement  ULTC.NS , India's
top cement producer by capacity, is in advanced talks with
German firm Heidelberg  HEIG.DE  to acquire its local business,
Moneycontrol reported on Monday, citing people familiar with the
matter.
    Executives from the Aditya Birla Group, UltraTech's parent,
met Heidelberg management to discuss the acquisition of
HeidelbergCement India  HEID.NS , the report said citing
sources.
        The report did not specify the value of the deal.
UltraTech, HeidelbergIndia and Heidelberg did not immediately
respond to Reuters' requests for comment.
        Ultratech is locked in a fierce battle with billionaire
Gautam Adani's conglomerate, as the 
    rivals snap up smaller firms
     in a bid to capitalise on expectations of heavy government
spending on infrastructure.
  
        Most recently, the Adani Group's Ambuja Cement bought a
nearly 47% stake in rival Orient Cement  ORCE.NS  for $451
million. 
    HeidelbergCement India's shares climbed 8% following the
report, while UltraTech's shares rose 0.5%.
    The German parent owns a 69.4% stake in its Indian arm,
exchange data showed.  


 (Reporting by Chris Thomas and Hritam Mukherjee in Bengaluru;
Editing by Janane Venkatraman)
 ((chris.thomas@thomsonreuters.com;))