HeidelbergCement AG is understood to have emerged as the frontrunner to pick up the promoters’ stake in Gujarat Sidhee Cements Ltd (GSCL), according to local news reports.
The Mehtas, who control the mid-sized company, are planning to divest a major part of their over 30 per cent stake in GSCL.
Industry circles say several other suitors are circling GSCL: these include Holcim, Cemex and Lafarge SA. It is learnt that the company’s promoters are likely to prefer the German major which figures among the top cement producers of the world.
If the deal goes through, it will be Heidelberg’s second major transaction in the country.
In July, HeidelbergCement announced plans to acquire a majority stake in Mysore Cement to gain access to the central and southern Indian markets.
In the first stage, Germany’s largest cement producer intended to buy out a 41.7 per cent stake through a capital increase.