Wednesday 15 October 2014

Birla Group to Bid for another European Asset

Aditya Birla group, one of India’s leading business groups, announced plans to bid for the assets that Europe’s Holcim and Lafarge are planning to sell after merger. The enterprise valuation of the assets on sale across the world could be as high as 8.85 billion).

If Aditya Birla Group wins the race, it will become one of the world’s top cement makers. At present, with a capacity of 62 million tonnes per annum, it is among the largest in India.

Birla is not alone in his quest for the global assets of Holcim and Lafarge that generate $4.4 billion of sales and have 10,000 people on rolls. Irish cement maker CRH, Cemex and Germany’s Heidelberg Cement and Brazilian firm Votorantim Cimentos SA are also considering a joint bid for the entire portfolio.

The bids could also be made for assets in a particular geography and, hence, more than 100 bids are expected from around the world.


Both Holcim and Lafarge had announced a list of proposed asset disposals as part of their planned merger on July 7 this year to meet the regulatory requirements of anti-competition authorities. 

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