Adani Group In Talks To Acquire Heidelberg's India Cement Unit For Rs 10,000 Cr

The Adani Group has entered discussions to acquire the Indian cement operations of Germany’s Heidelberg Materials, with Ambuja Cements, an Adani Group company, leading the potential buyout, according to media reports. The deal could be valued at approximately USD 1.2 billion (Rs 10,000 crore).

This acquisition would further the ongoing consolidation in India's cement sector, where top player UltraTech is also acquiring companies to maintain its dominance. The Adani Group, which became India’s second-largest cement maker after acquiring Holcim’s Indian operations in 2022, aims to quickly close the deal, sources said.

Ambuja Cements held Rs 18,299 crore in cash and equivalents as of 30 June, 2024, which may aid in the acquisition. However, the group could opt out if the sale process becomes competitive with other bidders, one source added.

Heidelberg Materials currently operates in India through its listed entity Heidelberg Cement India and unlisted Zuari Cement, with four plants totalling a capacity of 12.6 million tonnes annually. The company has faced stiff competition, resulting in market share losses in its key central India region.

Last year, UltraTech and JSW Cement, which is preparing for an IPO, were also reported to be interested in acquiring HeidelbergCement India. Heidelberg posted its first profit decline in five quarters for the June period, affected by lower sales volumes and price cuts.