JSW and Adani are reportedly vying for Holcim local cement holdings

Two sources indicated on Tuesday that India’s JSW Group intends to compete aggressively with Adani Group for assets of Holcim local cement holdings, laying the groundwork for a bidding war to become the country’s second-largest player in the industry. 
 
Sajjan Jindal, the CEO of the steel-to-cement JSW Group, told the Financial Times on Tuesday that the company would make a $7 billion proposal for Holcim subsidiaries Ambuja Cements Ltd and ACC Ltd. 
 
However, a person with direct information claimed the deal’s worth might rise significantly, possibly even doubling, as both JSW and Adani, helmed by India’s richest man Gautam Adani, seek ready-made assets that will provide the winner an immediate market presence. 
 
According to government statistics, India is the world’s second largest cement producer, with more than 7% of worldwide installed capacity.

Holcim local cement holdings

JSW views ACC and Ambuja as a “crown jewel,” according to a second person with direct information, and the business is “extremely aggressive and will fight (Adani) tooth and nail.” 
 
JSW Group, Adani, Holcim, Ambuja Cements, and ACC did not respond to Reuters’ requests for comment right away. 
 
JSW has stated that it will bid $4.5 billion of its own money and $2.5 billion from unnamed private equity partners. Adani, a port-to-coal company, is preparing to enter the cement business by acquiring Indian firms. 
 
Both Adani and JSW will submit proposals to Holcim in Switzerland, but a deal will hinge on more than simply financial terms, according to one of the sources and another other. 
 
Once negotiations with a company have progressed, Holcim is determined to include a break-fee clause to ensure “substantial” compensation if the acquisition fails, according to one of the sources. 
 
Once negotiations with a company have progressed, Holcim is determined to include a break-fee clause to ensure “substantial” compensation if the acquisition fails, according to one of the sources.

Holcim and Ambuja

Holcim has been attempting to diversify away from its core business of cement and aggregates in order to focus more on building technologies in the face of rising sustainability concerns. Read the entire story. 
 
With plans to develop, Ambuja and ACC have a combined capacity of at least 66 million tonnes per year. After UltraTech Cement‘s 120 million tonnes, any buyer of the two companies will become the country’s second-largest cement producer. 
 
JSW now produces 14 million tonnes of cement per year and plans to increase it to 25 million tonnes by next year. 
Once negotiations with a company have progressed, Holcim is determined to include a break-fee clause to ensure “substantial” compensation if the acquisition fails, according to one of the sources. 

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