Reliance Infrastructure is selling its cement business. Binding bids are expected to be submitted by 24 December, with companies including JK Lakshmi Cement, Birla Corporation, JSW Cement, Carlyle, Blackstone, Baring and China Resources Cement said to be in the race to acquire the 5.6 million t capacity cement business.
According to reports, 15 companies submitted initial expressions of interest, from which these seven were chosen to submit binding bids.
This has been a big year for M&A activity in the cement industry and the same is expected for 2016. The sale of Lafarge assets in India to Birla Corp. Ltd was agreed earlier this year following the merger between Lafarge and Holcim, but has yet to be completed. Some of the companies interested in the Reliance cement assets had earlier taken part in the bidding for the Lafarge interests.
Reliance is exiting the cement business in order to focus on the defence sector. This deal is valued at around Rs.5000 crore.
Edited from various sources by Katherine Guenioui
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