UltraTech Cement, India’s top cement producer by capacity, is in advanced talks with German firm Heidelberg to acquire its Indian unit, Moneycontrol reported on Monday, citing sources familiar with the matter.
Executives from the Aditya Birla Group, UltraTech’s parent, met Heidelberg management to discuss the acquisition of HeidelbergCement India, the report said, without specifying the value of the deal.
The German parent’s 69% stake in its local arm was valued at around 33.8 billion rupees ($391.08 million) as of Friday’s close.
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The talks come months after newspaper Economic Times reported that UltraTech’s rival Adani Group was in talks to buy the German parent’s stake.
It was not immediately clear if the talks with Adani fell through. Moneycontrol’s report did not specify the status of Adani Group’s talks.
Besides the two majors, Heidelberg had also drawn interest from IPO-bound JSW Cement, multiple media outlets reported last year.
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Heidelberg said in an emailed response that it does not comment on market rumours.
UltraTech, HeidelbergCement India and the Adani Group did not immediately respond to Reuters’ requests for comment.
UltraTech and the Adani Group – which entered the sector in 2022 by buying the cement assets of Swiss firm Holcim – are engaged in a turf war to expand capacities and shore up market share, with cement demand expected to remain healthy, according to analysts.
In July, Heidelberg CEO Dominik von Achten said the group’s market position in India was “not perfect yet” and it was looking at all options.
The company, which entered India in 2006 with a series of domestic acquisitions, now has four plants with an annual capacity of 12.6 million tonnes, according to its website.
HeidelbergCement India’s shares traded 6% higher following the report. It is due to report quarterly results later this week.
UltraTech reported an upbeat third-quarter results last week.
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