UltraTech drops out of race for Holcim-Lafarge assets

Kumar Mangalam Birla has decided to drop out of the race to buy overseas cement assets of Holcim & Lafarge. Ultratech confirmed to ET NOW that the company has not participated in the final bidding round, deadline for which ends today.

Ultratech had earlier shown interest in buying Brazil, Phillipines assets of Holcim-Lafarge and had placed a bid in the first round. Ultratech had conducted due diligence process for assets worth around $2 bn but decided to drop out at the final stage.

Industry experts point out that the recent acquisition of JP Associates' M.P. unit by Ultratech has quelled KM Birla's appetite for acquisitions in the cement sector. Sources also share that Ultratech would strategise to grow in capacity in India to reach the 100 million tonnes target rather than go overseas to markets which have less growth opportunities than India.

Holcim & Lafarge are merging their operations and have to sell several global assets in order to get clearance from competition watchdogs in various countries.