New Delhi: The world’s biggest cement maker, Holcim Ltd, may take the exit route in India, 17 years after it enter the Indian market.
Quoting sources, news agency Bloomberg reported that Holcim is considering a potential sale of its businesses in the country, including Ambuja Cements. The sources said that the Swiss cement major is gauging interest in its controlling stake in Ambuja.
According to the Bloomberg report, Holcim controls 63.1 per cent in Ambuja, which has a market value of about $9.6 billion.
Deliberations are in the early stages and may not lead to a transaction, the source added. As the news Holcim weighing sale of its business reached markets, shares of Ambuja jumped more than 20 per cent this month, partially fuelled by market speculation about a potential merger.
According to Bloomberg, a representative for Holcim declined to comment, while a spokesperson for Ambuja couldn’t immediately be reached for comment outside regular business hours in Mumbai.
Founded in 1983, Ambuja has a cement capacity of 31 million metric tons, and has six integrated manufacturing plants and eight cement grinding units in India, its website shows.
Its subsidiaries include ACC Ltd., which is also publicly traded.
Holcim has been selling off its non-core assets to reduce debt and diversify through acquisitions. It had divested its Brazilian unit for $1 billion in September and is also planning to sell its business in Zimbabwe.
Meanwhile, the company agreed to buy Malarkey Roofing Products in December and Firestone Building Products in early 2021, as Chief Executive Officer Jan Jenisch adds new construction businesses outside of traditional cement.