UltraTech ‘pulling back’ from LafargeHolcim bids

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India/Brazil: UltraTech Cement is re-evaluating its decision to bid for the Brazilian assets of Holcim SA, according to local media. The Aditya Birla group company had submitted non-binding bids for the cement assets in October 2014. Any binding bids are due in January 2015.

The Brazilian assets on sale include three integrated cement plants and two grinding stations that share a total capacity of 3.6Mt/yr. There is also one ready-mix plant. Now, rather than investing in those assets, the UltraTech plans to focus and expand its domestic cement production, according to local media, but an UltraTech spokeswoman said that company does not comment on market speculation.

The decision to re-think the Brazilian investment may stem from weak demand conditions in the market. The Brazilian economy has seen sub 2% growth in the last 11 quarters. For the three months ending 30 September 2014, the Brazilian economy actually contracted by 0.24%.

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