Holcim may find it difficult to get a majority in ACC unless they hike their open offer by a substantial amount. All Indian cement companies are on a roll at present, ACC has for example boosted its net profits by a massive 137.8 per cent for the third quarter ended December 31, 2004 and neither the investors nor the financial institutions will be inclined to show any interest at the current price. Whether Holcim’s move will prompt the other majors to get more involved in the Indian cement sector remains to be seen. On Bertrand Collomb’s recent trip to India he was quoted as saying that Lafarge was interested in widening its Indian exposure, more particularly in the western region of India " provided the price is right."
Published under Cement News