French cement major, the Vicat Group, is close to acquiring a large stake in the Hyderabad-based unlisted company, MyHome Cement Industries, for about Rs 800 crore.
MyHome, which has an annual capacity of about 3Mt, is one of the leading cement makers of Andhra Pradesh. The company could be an entry point for the French major to access India.
Sources close to the development said the promoters of MyHome were likely to sell less than 51% of the total equity to Vicat. The price negotiations are hovering at $120-125/t, pegging the cost of the acquisition at about Rs 800 crore, the sources said.
If inked, the deal could become one of the high-cost transactions in the Indian cement industry, which had earlier seen acquisitions in the $90-$110 per tonne range.
The move would benefit Vicat as it already has presence in the US, Turkey, Senegal, Switzerland, Egypt and Italy.