The world’s second-largest cement company Holcim is all set to buy controlling stake in Ambuja Cements Ltd (ACL). Holcim will spend $1.34 billion to acquire an additional 24 per cent stake in the Indian cement major. Holcim is paying USD 300 per tonne to buy stake in Ambuja Cement. Holcim expects to conclude the transaction by November. Analysts feel that Ambuja has got a fair value in this deal.

Ambuja Cement touched 52 week high on NSE in early trading. The stock went up to 154 levels but settled the day at a price of Rs 132.85 (Up by 2%).

Holcim stated in its official statement, “Suresh Neotia will continue as Chairman and Narotam Sekhsaria as Vice Chairman on the Board of Directors of ACL.”

Ambuja cement is fourth largest cement maker in India. Holcim has acquired an additional 3.9% stake from Sekhsaria at a price of Rs 154 per share. Holcim will make an open offer to shareholders of company at a price of Rs 154 by the end of November, 2007.

Holcim will increase its stake to 56 per cent after the open offer. Analysts believe that Holcim may even merge ACC with Ambuja Cements. The company currently hold 41% stake in ACC. The combined entity will have a capacity of 39 million tonnes.