UltraTech Cement, India’s top cement producer by capacity, said on Thursday it will buy a 23% stake in India Cements for up to 18.85 billion rupees (about $226 million).
UltraTech said it would buy 70.6 million India Cements shares for up to 267 rupees each, a 1.7% premium to the stock’s closing price on Wednesday.
India Cements’s shares jumped 10% to nearly 289 rupees in initial trade, while UltraTech’s shares rose 5.2%.
UltraTech’s stake in Chennai-based India Cements comes as it jostles for market share with the Adani group’s Ambuja and ACC cement companies.
Earlier this month, Ambuja bought Penna Cement Industries in a $1.25 billion deal.
Last year, UltraTech bought Kesoram Industries’ cement business for $645 million.
Reuters