holcim: Who are the favorites to buy Holcim assets in India?

“After JSW, we will hear more such news in the coming days, where other business houses will also showcase a similar type of collaboration with other private equity players,” says Rakesh AroraManaging Partner, Go India Stocks.com.

What are your thoughts on JSW teaming up with Carlyle to bid on Holcim’s assets?
This is not a surprise because this is a once-in-a-lifetime opportunity. It is a great asset and many business houses in India would try to acquire it. The paycheck is around $10 billion plus. This is why they are trying to partner with private equity players to finance this acquisition. I think we will hear more news like this in the coming days where other business houses will also come out with some kind of collaboration with other private equity players. I think things are progressing very well on that side.

Holcim Group is the second largest in India with around 11% market share, but over the years it has been losing market share. Who could be the other bidders? What about UltraTech and others?
Among the companies that have shown interest in getting into the cement business, JSW Cement is already a household name. For them, it’s a natural extension. The Adani Group has also shown interest. They formed a division called Adani Cement and they tendered and acquired some limestone reserves. So Adani is also likely in the fray.

Then incumbents like UltraTech, Dalmia and Shree are the top three that I think should bid because it makes sense for them not to allow any other strong players into their industry. So they should also bid aggressively. So all these four, five names are going to be the favorites.