UltraTech Cement has decided to buy the cement business of Emami Group in an all-cash deal worth ₹6,500-7,000 crore.
According to the sources, the sale of Emami Cement Ltd has entered the final bid round, with Ambuja Cements Ltd, part of the Lafarge Holcim Group, as the only other contender.
Ambuja’s offer is less than that of Aditya Birla Group-owned UltraTech. UltraTech is most likely to win the bid, especially considering their eagerness to expand in the east and the offer price made. The final binding bid round is likely to end next week. This purchase will help UltraTech make deeper inroads into eastern India and further consolidate its leadership in the domestic market.
Emami Cement has a total capacity of around 8 million tonnes per annum (mtpa) across three operational cement plants in eastern and central India, while UltraTech has a capacity of over 117 mtpa.
Both UltraTech and Ambuja’s offers are currently undergoing final due diligence by the banker and adviser. UltraTech intends to monopolize the market in the central-east, east and the far-east geography, where Emami owns most of its cement manufacturing units.