Street View: Kesoram deal to cement southern hold for India's UltraTech

Kesoram Industries

01/12/2023 06:05

** India's UltraTech Cement  ULTC.NS  on Thursday said it
will buy Kesoram Industries'  KSRM.NS  cement business in a deal
worth over $645 mln
    ** ULTC to get ownership of Kesoram's two cement units in
Karnataka and Telangana with total capacity of 10.75 million
tons per annum
    
    DEAL TO STRENGTHEN ULTRATECH'S TOP INDUSTRY POSITION
    ** Morgan Stanley ("overweight"; PT 9,300 rupees) says deal
should help co drive economies of scale and reduce risk of
excess organic supply over medium term in industry
    ** Emkay Global ("add"; PT 9,550 rupees) says deal will
solidify co's presence in south, where its hold is lowest at
11%;
    ** ULTC's market share to improve by 350-400 bps post
acquisitions, capacity additions - Emkay
    ** Jefferies ("buy"; PT 9,700 rupees) says deal likely to
strengthen ULTC's number one position in cement industry, but
flags valuation appears to be "tad on the higher side" vs deals
in the recent past

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))