*Cemex *is looking to acquire *Penna Cement *or come in as a strategic
investor.

Penna Cement CMD *P Prathap Reddy *has refused to comment, confirmed that
the company was looking for a strategic investor and they were talking to a
few companies.

Cemex has been reportedly looking to enter India through an acquisition but
global recession had made fund raising difficult.

The promoters hold 100% of Penna Cement. The promoters also have a real
estate business.

 Transaction Note

Recently, *Vicat *acquired of 51% stake in *Bharathi Cement*. It is said
that the valuation has been in the range of $200 a tonne.

Penna Cement has a capacity of 5 mn tpa across three plants in Andhra
Pradesh, according to moneycontrol.

Cemex is the third largest producer of cement in the world. It does not a
have a presence in India unlike *Holcim *and *Lafarge*.

*ACC *and *Gujarat Ambuja Cements*, which control 20% of the Indian market,
were acquired by Holcim a few years ago. Lafarge has setup its green-field
6.5mn tonne plant in India, but is facing legal hurdles to increase
capacity.


-- 
Regards

Hardik Shah

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