JSW Cement eyes Heidelberg Materials' Indian unit acquisition

JSW Cement, the building materials division of leading Indian steelmaker JSW Group, is reportedly in the early stages of negotiations with German cement company Heidelberg Materials to acquire its cement business in India, which produces 13.4 million tonnes annually. Discussions between JSW Cement and Heidelberg Materials began after JSW Group made an unsolicited offer to acquire Heidelberg's local entities, which mainly operate in peninsular India. The building materials industry in India, the world's second largest cement market in terms of capacity and consumption, is highly regional and heavily dependent on freight transport. In the context of mergers and acquisitions, the valuation of companies is often influenced by their proximity to the final consumer market and their profitability. Reports suggest that another global cement manufacturer could soon exit the Indian market, following the exit of Holcim Group in 2022. In the competing bids for Ambuja Cements and ACC, both previously owned by Holcim Group, Adani Group emerged as the successful bidder. JSW Group also participated in this bidding process.