Holcim, the world?s second-largest cement maker, has launched an audacious bid to acquire Associated Cement, India?s largest cement manufacturer, for $800m.

The Swiss company is making the bid jointly with Mumbai-based Gujarat Ambuja, India?s third largest cement company. Gujarat Ambuja already holds a 13.8 per cent stake in ACC and its holding has been the focus of intense speculation for many months.

As part of Thursday?s deal, Holcim will acquire a 67 per cent stake in a unit of Gujarat Ambuja and the two will make an open bid for ACC through a special vehicle.

The offer values ACC?s stock at Rs370 per share. ACC?s shares were trading at Rs344.5 in mid Thursday afternoon.

India?s cement industry has been experiencing a series of consolidations in the past several years. But Holcim?s bid marks the first significant foray by a foreign company into the industry.

The sector is currently growing 7-8 per cent a year and is regarded as a ripe market for cement companies in Europe looking for growth.

Lafarge of France is currently the only foreign company to have made notable forays into India, building up a 3-4 per cent market share after acquiring the cement assets of the Tata Group.