UltraTech Cement, the flagship company of the Aditya Birla Group, is reportedly in advanced discussions to acquire HeidelbergCement India Ltd from German cement major Heidelberg Materials. Sources indicate that senior Aditya Birla executives have recently engaged with Heidelberg Materials' global management to explore the acquisition.
Heidelberg Materials currently holds a 69.39 per cent stake in the Indian listed entity, valued at approximately INR33.81bn (US$406.7m) based on the stock’s closing price on 24 January 2025. A controlling stake acquisition would trigger a mandatory open offer under SEBI's takeover norms for an additional 26 per cent stake from public shareholders.
UltraTech’s move aligns with its strategy to expand through acquisitions in response to increasing competition in the Indian cement market, particularly following Adani Group’s US$6.6bn acquisition of Ambuja Cements and ACC Ltd in 2022.
Heidelberg Materials entered the Indian market in 2006 and has since grown its cement manufacturing capacity to 14Mta through a series of acquisitions and capacity expansions. For FY23-24, the company reported a revenue of INR24.2bn (US$291m), a six per cent increase from the previous fiscal, while net profit surged 69 per cent to INR1.67bn (US$20m).
Both Heidelberg Materials and UltraTech Cement have declined to comment on the ongoing market speculation.
