labels: industry - general, gujarat ambuja cements
Holcim hikes stake in Gujarat Ambuja Cements to 18.5 per centnews
16 November 2006

Mumbai: Holcim, the world's second-largest cement maker, has increased its stake in Gujarat Ambuja Cements Ltd from 14.8 per cent to 18.5 per cent. The Swedish cement maker bought 50 million shares of Gujarat Ambuja, forming 3.7 per cent of its total equity, for a consideration of Rs690 crore.

Company source said Holcim is expected to increase its stake in the company further up to 27 per cent.

Holcim bought the shares in a private placement at Rs137 per share, reports quoting company sources said.

Holcim bought a 14.8-per cent stake in Gujarat Ambuja for $1 billion in January as part of its strategy to strengthen its foothold in India's fast-growing market.

Gujarat Ambuja is India's third-biggest cement maker with capacity of 13 million tonnes a year.

Holcim, with a market capitalisation of around $22 billion, already controls more than a third of Associated Cement Companies Ltd, India's second-biggest cement producer with 18 million tonnes annual capacity. Holcim has market presence in all emerging markets of Latin America and Asia.

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Holcim hikes stake in Gujarat Ambuja Cements to 18.5 per cent