Search the Internet          Tips  Sites: Finance, Investment

Global cement firms vie for L&T stake

Six foreign cement giants including France's Lafarge SA, the world's biggest, have shown interest in bidding for a slice of India's largest cement business owned by Larsen & Toubro, a source close to the deal said on Monday.

Swiss giant Holderbank and Mexico's Cemex, along with Lafarge are among the six to submit expressions of interest in bidding for the stake, the source added.

Others include Italcementi, Italy's biggest cement group, German giant Heidelberger Zement AG and a Japanese firm.

Analysts believe the deal would be one of the largest in the cement business giving the winner a foothold in L&T's 15 million tonnes of capacity spread across this vast country.

L&T shares were down 1.26 per cent at Rs 239.50 in afternoon trade, while the Sensex was down just over 2 per cent at 4,242.01.

The shares have risen 69.4 per cent since hitting Rs 141.25 in October, which was a low not seen in more than two years.

The expressions of interest mean these firms will now receive confidential information allowing them to value L&T's business, the source said.

L&T spokesman could not be contacted immediately for comment.

Last year, L&T invited expressions of interest to bid for a 25 per cent stake in its cement business which it plans to float separately. L&T, whose shares have nearly two percent weightage in the Sensex, also has an engineering and construction business.

India is one of the leading producers of cement in the world.

Tell us what you think of this report