Birlas, Ambanis give new meaning to A&M

The A&M business in India is witnessing a curious feature. The original business house of the Birlas is going to acquire the cement business of the Dirubhai Ambani group. As the original group associated with the freedom movement, the Birlas may have found the rise and rise of the Dirubhai Ambani group not to their liking. But the modern business reality and globalisation have given a new meaning to acquisitions and mergers. The Birlas, therefore, have emerged as the frontrunner to acquire Reliance Infrastructure's cement business from the Anil Ambani group. The Birlas have offered Rs.5,100 crore for the cement business. Of the amount, P/E part is said to be Rs.4,200 crore to Rs.4,500 crore. Those who filed the preliminary expressions of interest for the cement business included Baring Private, Equity Asia, Calyle, JSW Cement, JK Laxmi Cement and China Resource Cement Holdings. The competitive bidding result is expected to be out in 2 weeks time. The Anil Dirubhai Ambani group is getting active in the defence sector, especially the shipbuilding and port development. And the Birlas are there in the cement business for long. So it appears to be a fair deal between the Birlas and the Ambanis.