Shares of Ambuja Cements rose over 1 percent, and HeidelbergCement India surged 13 percent on October 4, following reports that the Adani Group is in talks to acquire HeidelbergCement India and Zuari Cement. The potential buyout is estimated to be valued at around Rs 10,000 crore, according to a report by The Economic Times.
Ambuja Cements opened at Rs 619.35, up 1.4 percent, and has surged over 42 percent in the past year, outperforming the Nifty 50 index’s 28 percent growth. HeidelbergCement India’s stock, on the other hand, climbed to Rs 219, marking a 13 percent rise, despite underperforming the Nifty over the last year.
The acquisition may as much as double Ambuja’s production capacity from 89 mtpa to more than 140 mtpa by 2028 with HeidelbergCement India adding 14 mtpa and Zuari Cement 7 mtpa, taking its total capacity to over 140 mtpa by 2028. But with several other major players such as UltraTech Cement and JSW Cement, competition can spur a bidding war that may complicate the deal.
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Source: Moneycontrol
News Desk
