<p>India's JSW Group plans to compete aggressively with Adani Group for assets of Holcim AG's local cement businesses, two sources said on Tuesday, setting the stage for a bidding battle to become the country's second-biggest player in the industry.</p>.<p>The steel-to-cement JSW Group's chief Sajjan Jindal told the Financial Times on Tuesday it would make a $7 billion bid for Holcim subsidiaries Ambuja Cements Ltd and ACC Ltd.</p>.<p>But a source with direct knowledge said the deal value could go much higher, even double, as both JSW and Adani, run by India's richest man Gautam Adani, chase ready-made assets that will immediately give the winner a big presence in the market.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/holcim-weighs-sale-of-96-billion-ambuja-cements-1100625.html">Holcim weighs sale of $9.6-billion Ambuja Cements </a></strong></p>.<p>India is the second-largest cement producer in the world and accounts for more than 7% of the global installed capacity, according to government data.</p>.<p>A second source with direct knowledge said that JSW considers ACC and Ambuja as a "crown jewel" and the company was "very aggressive and will fight (Adani) tooth and nail".</p>.<p>JSW Group, Adani, Holcim, Ambuja Cements and ACC did not immediately respond to requests from Reuters for comment.</p>.<p>JSW has said it will offer $4.5 billion in its own equity and $2.5 billion from undisclosed private equity partners for the bid. Ports-to-coal group Adani is planning its cement foray by acquiring the Indian companies.</p>.<p>Switzerland's Holcim will review bids from both Adani and JSW, but a deal would depend not just financial but on other contractual terms, one of the sources and another person said.</p>.<p>Once the deal talks progress with a company, Holcim is determined to insert a break-fee clause to get "high" compensation if the transaction fails, said one of the sources.</p>.<p>Holcim has been trying to diversify away from its core business of cement and aggregates to focus more on building technology amid increased emphasis on sustainability. .</p>.<p>Ambuja and ACC have a combined capacity to make at least 66 million tonnes a year, with plans to expand. Any buyer of the two companies will become the second-biggest player in the country after UltraTech Cement's 120 million tonnes.</p>.<p>JSW has a cement capacity of about 14 million tonnes a year, which it wants to lift to 25 million by next year.</p>.<p>India's ET Now news channel reported on Tuesday that global steel major ArcelorMittal was also "evaluating the possibility of bidding" for ACC and Ambuja. ArcelorMittal did not respond to a request for comment.</p>
<p>India's JSW Group plans to compete aggressively with Adani Group for assets of Holcim AG's local cement businesses, two sources said on Tuesday, setting the stage for a bidding battle to become the country's second-biggest player in the industry.</p>.<p>The steel-to-cement JSW Group's chief Sajjan Jindal told the Financial Times on Tuesday it would make a $7 billion bid for Holcim subsidiaries Ambuja Cements Ltd and ACC Ltd.</p>.<p>But a source with direct knowledge said the deal value could go much higher, even double, as both JSW and Adani, run by India's richest man Gautam Adani, chase ready-made assets that will immediately give the winner a big presence in the market.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/holcim-weighs-sale-of-96-billion-ambuja-cements-1100625.html">Holcim weighs sale of $9.6-billion Ambuja Cements </a></strong></p>.<p>India is the second-largest cement producer in the world and accounts for more than 7% of the global installed capacity, according to government data.</p>.<p>A second source with direct knowledge said that JSW considers ACC and Ambuja as a "crown jewel" and the company was "very aggressive and will fight (Adani) tooth and nail".</p>.<p>JSW Group, Adani, Holcim, Ambuja Cements and ACC did not immediately respond to requests from Reuters for comment.</p>.<p>JSW has said it will offer $4.5 billion in its own equity and $2.5 billion from undisclosed private equity partners for the bid. Ports-to-coal group Adani is planning its cement foray by acquiring the Indian companies.</p>.<p>Switzerland's Holcim will review bids from both Adani and JSW, but a deal would depend not just financial but on other contractual terms, one of the sources and another person said.</p>.<p>Once the deal talks progress with a company, Holcim is determined to insert a break-fee clause to get "high" compensation if the transaction fails, said one of the sources.</p>.<p>Holcim has been trying to diversify away from its core business of cement and aggregates to focus more on building technology amid increased emphasis on sustainability. .</p>.<p>Ambuja and ACC have a combined capacity to make at least 66 million tonnes a year, with plans to expand. Any buyer of the two companies will become the second-biggest player in the country after UltraTech Cement's 120 million tonnes.</p>.<p>JSW has a cement capacity of about 14 million tonnes a year, which it wants to lift to 25 million by next year.</p>.<p>India's ET Now news channel reported on Tuesday that global steel major ArcelorMittal was also "evaluating the possibility of bidding" for ACC and Ambuja. ArcelorMittal did not respond to a request for comment.</p>