The stake of Holcim Group in Ambuja Cement and ACC Cement combined has intensified, with ArcelorMittal showing interest in acquiring the asset valued at over $10 billion. ArcelorMittal emerged as a formidable contender in Holcim Group. Its entry into the cement business will enable ArcelorMittal to establish brand recognition in India and complement the steel business. Holcim can extract a premium from the new entrants into the cement business as it will make it the second-largest producer in India. Ambuja Cement and ACC have a combined production capacity of 66 million tonnes per annum (mtpa), which will increase to 80 mtpa after completing the ongoing expansion projects. Holcim holds a 63% stake in Ambuja Cement and a 50.05% stake in ACC. Since September, Holcim has been selling its non-core assets and divested its Brazilian unit for $1 billion. Ambuja Cement reported a 30% decline in the March quarter, with net profit at Rs 856 crore, compared to Rs 1,228 crore, even as its income increased 3% to ₹7,990 crore from Rs 7,812 crore. The net profit of ACC was down by 30% to ₹396 crore from Rs 563 crore, while its net sales increased by 3% to Rs 4,322 crore from Rs 4,213 crore. ArcelorMittal is competing with other firms, including Adani Cement and JSW Group, for acquiring Holcim stakes. Other players are UltraTech Cement and Shree Cement. JSW Group has offered $4.5 billion in its own equity share and $2.5 billion jointly with private equity partners. ArcelorMittal, with the acquisition of Essar Steel assets, has been bullish on investment in India. This year in March, it entered into a strategic partnership with Greenko Group to develop a 975 MW renewable energy project at Rs 4,570 crore in Andhra Pradesh. This project is estimated to complete in two years. After completion, it will provide uninterrupted green energy to ArcelorMittal Nippon Steel (AM/NS) India for 25 years. Image Source Also read: Holcim Group to sell Ambuja Cement and ACC Ltd