The race for Holcim Ltd. (SWX:HOLN)'s stake in Ambuja Cements Limited (BSE:500425) and ACC Limited (NSEI:ACC) combined has intensified with ArcelorMittal S.A. (ENXTAM:MT) showing interest to acquire the asset valued at over $10 billion. ArcelorMittal is learnt to have held initial talks with Holcim Group and has emerged as a formidable contender. The entry into cement business will enable ArcelorMittal establish its brand across the country and complement the steel business.

On the other hand, Holcim can extract a premium from the new entrants into cement business as it will directly make it the second largest producer in India with pan-India presence. ArcelorMittal is competing with a number of other players including Adani Cement and JSW Group for acquiring Holcim's stake. The JSW Group has offered $4.5 billion in its own equity and $2.5 billion jointly with private equity partners.

Others in the race include UltraTech Cement Limited (NSEI:ULTRACEMCO) and Shree Cement Limited (NSEI:SHREECEM).