French cement maker Vicat has emerged as a surprise frontrunner to acquire a cement unit of southern conglomerate Shriram Group. Vicat is expected to buy controlling shares in Sree Jayajothi Cements Ltd, which is a part of Shriram Ventures, the holding entity of the group's non-financial services businesses, valued at about US$250m.

The US$3bn French MNC surged into the fray after Shriram's deal-making with private equity giant Blackstone collapsed two months ago. Blackstone was close to acquiring Sree Jayajothi but pulled out last minute owing to differences.