The Adani Group is reportedly making rapid progress in expanding its cement business and eyeing the Indian arm of German cement giant Heidelberg Materials. According to a recent report by The Economic Times, the Adani Group is currently in talks to acquire the Indian unit of Heidelberg Materials. However, here is no official confirmation yet, but the potential deal has already created quite a buzz in the stock market.
Shares in Heidelberg India Ltd., the Indian-listed entity of Heidelberg Materials, surged nearly 18% after the news of the talks. Shares opened at Rs 238.70 on the Bombay Stock Exchange on Monday and later rose to an intra-day high of Rs 257.85, marking a new 52-week high for the company. Shares were trading at Rs 252.25 as of 9:35 am. It is important to note that the stock has been relatively inactive over the past year.
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Industry insiders say the deal, which could be worth around Rs 10,000 crore if finalised, will be made by the Adani Group potentially through its owner Ambuja Cements. Such a move will further strengthen Adani's foothold in the Indian cement market. Heidelberg's Indian unit boasts a production capacity of 14 million tonnes, making this a significant acquisition that could further elevate Adani's market presence. Currently, Ultratech Cement is the top player in the industry.
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Heidelberg Materials is a global cement powerhouse, operating in more than 50 countries. In India, it is present under Heidelberg India Limited as a gambling cement in both listed markets and unlisted markets. The potential acquisition signals Adani Group's growing ambition to dominate the cement sector, continuing its strategic expansion in various industries.
Disclaimer: This is merely a story about the performances of the stock. Jagran does not advise investing. Please take expert opinion before investing.