Delhi-based Dalmia Bharat is reported to be in talks to bid for one or more European cement assets put on sale by Holcim and Lafarge as part of its global cement merger deal. Dalmia Bharat is the second Indian company after Kumar Mangalam Birla's UltraTech to join the race for buying Holcim and Lafarge units due for disposal.
Holcim and Lafarge have decided to sell around 40 cement assets across the world which could be worth over US$10bn. BNP Paribas, Credit Suisse, HSBC and Morgan Stanley are the advisors to the deal. While UltraTech has already initiated a due diligence process after placing non-binding bids for units in Brazil and Philippines, Dalmia Bharat is a late entrant to the process. UltraTech is already said to be in the market to raise over a billion dollars for participating in the final round of bids.
Dalmia Bharat acquired JP Associates' Bokaro cement unit earlier this year and is said to be in other merger talks which could increase its capacity to 24Mta by 2015-end.
"Dalmia Bharat is exploring the options available but a lot depends on whether it has the financial strength to make a big acquisition," a source pointed out.
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