Shares of Heidelberg Cement rose 17% on Monday's trading session.

What Happened: The Adani Group is said to be negotiating the purchase of Heidelberg’s cement unit in India, as per a report by The Economic Times. 

The unit after buyout would be held by Ambuja Cements and worth around ₹10,000 crore ($1.2 billion). Adani group had entered the cement industry by acquiring Holcim's India operations of Ambuja Cement and ACC in 2022. 

The report said Adani Group might back out of the deal if the sale process involves other competitors. 

Ambuja Cements had cash position of ₹18,299 crore as of June 30. 

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Adani Group is currently second in the cement industry in India, behind the Ultratech Cement group. 

Heidelberg is one of the largest cement manufacturers in the world. The company's website claims it has 14 million tonnes of production capacity in India, but the actual number could be lower, the report said. 

In its June quarter results, Heidelberg Cement India reported a 10% decline year on year in revenue to ₹532.19 crore while its net profit fell 23% from the previous year to ₹39.9 crore.

Price Action: Shares of Heidelberg Cement rose 17.93% to intraday high of ₹258 on Monday morning. 

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