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Amid the race to pick the controlling stake of Holcim Group in Ambuja Cements-ACC combine getting hotter, Anil Singhvi, executive chairman of Shree Digvijay Cement, told CNBC-TV18 it is unlikely that existing biggies would bag Ambuja due to India's competition commission hurdle.

"I don't see UltraTech as a potential buyer for Ambuja. Expect someone who does not exist in cement right now to grab Ambuja," Singhvi said, adding he expects the Ambuja deal to be announced within 10 days.

He also said he doesn't expect any foreign player to take the asset.

"Ambuja Cements will be taken by a domestic player for sure. We often talk about foreign players, but after the merger of Lafarge and Holcim, there is no foreign player who will be looking at India," he said.

At present, Aditya Birla Group’s UltraTech is the largest cement company in India, with a capacity of 117 million tonnes per annum. UltraTech's interest in Holcim's stake would be an issue with the CCI considering risk of regional-wise monopoly.

Taking over both Ambuja and ACC will catapult any player to the second position, with a combined pan-India capacity of 66 million tonnes per annum in the highly competitive, fragmented, and price-sensitive market.

"This may change the dynamics of the industry because Ambuja-ACC nearly gave the market share in favour of Shree Cement, Dalmia Cement and UltraTech," Singhvi said.

The Holcim Group, the world’s largest cement maker, is exiting India after its entry 17 years ago. The Adani Group, UltraTech Cement, JSW Cement, and Shree Cement are all said to be vying for its assets.

Holcim has 63.19 percent stake in Ambuja and owns only 4.48 percent directly in ACC. For ACC, a suitor may launch a 26 percent open offer after acquiring 4.48 percent from Holcim as the remaining 50 percent is held via Ambuja Cement.

"Valuations, according to me, will not be the clinching situation. In fact, the one not having a stake in the cement industry today is likely to pay even more," Singhvi said.

First Published:Apr 27, 2022 1:00 PM IST